
<p>The NFT Market is stabilizing thanks to solid and engaged communities with a healthy trading behavior. Usefulness of tokens now seems to take precedence over the notion of financial investment.</p>



<p>The first era of NFTs where profit and speculation reigned supreme seems over, and gradually a new page in the history of this technology is being written under the mainstream radar.</p>



<p>The next boom is beginning to take shape. There is still time to prepare for it, but get ready because this wave will most likely be even more explosive and impactful than the era of “NFT Collectibles”.</p>



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<div class="wp-block-button aligncenter has-custom-width wp-block-button__width-100 has-custom-font-size is-style-fill has-medium-font-size"><a class="wp-block-button__link has-white-color has-luminous-vivid-orange-background-color has-text-color has-background" href="https://www.slideshare.net/secret/ECKivLhCG3AUNT" style="border-radius:0px" target="_blank" rel="noreferrer noopener">Read your Q3 2022 NFT Market Report</a></div>
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The NFT market shrinks and enters into a stabilizing phase, also showing auspicious signs of a coming boom taking shape.

A massive 77% drop was observed in terms of USD traded between Q2 and Q3 2022 with a global volume of about US$1.7 billion in Q3 2022.

A net quarterly loss of US$450M is recorded for the first time ever.

A 84% decrease in profit at resell is observed during the period, for a total loss that decreased by 44% (US$326 million profit for US$783 million loss).

1. The fundamentals
2. A look back at Q3 2022
3. Overall performance Q3 2022
4. Detailed performance (search volume, performance by segment, market distribution by project, etc.)
5. Profits & losses on the market (profit & loss per segment over time, most profitable projects, etc.)
6. Focus by segment (key metrics about: crypto-art, collectibles, gaming, metaverses, utilities)
7. Conclusion


2022

Quarterly NFT Market Report


<p>The bear market has largely impacted the NFT market. For the first time in the history of NFTs, trading-related activities are no longer profitable. Despite a complicated economic context, NFTs continue to surprise, and we observe some strong trends around Metaverses and Utilities over the period, which tends to revitalize the markets. </p>



<p>With speculation in a tailspin, it looks like the industry has once again entered a building phase, away from the spotlight.</p>



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A massive 25% drop was observed in terms of USD traded between Q1 and Q2 2022 with a global volume of about US$8 billion in Q2 2022.

A net profit of US$460M is recorded over Q2 2022, a significant decrease compared to Q1 2022 (US$2.3B).

Secondary market remains predominant with almost 80% of the volume of USD traded, in the meantime, primary market has constantly decreased over the period.

A 46% decrease in profit at resell is observed during the period, for a total loss that increased by 23% (US$1.8 billion profit for US$1.4 billion loss).

The market is more centralized than ever: More than 30% of the volume of USD traded over the quarter is distributed between projects that have been launched or acquired by Yuga Labs.

The bear market has largely impacted the NFT market. For the first time in the history of NFTs, trading-related activities are no longer profitable. Despite a complicated economic context, NFTs continue to surprise, and we observe some strong trends around Metaverses and Utilities over the period, which tends to revitalize the markets.

With speculation in a tailspin, it looks like the industry has once again entered a building phase, away from the spotlight.


<p>The incredible enthusiasm for NFTs led to tremendous growth of the NFT industry in 2021. The early days of 2022 mark a new era for NFTs, with many changes to the market.<br>Are we facing a bubble on the verge of bursting? Are the NFTs markets holding up despite the tense geopolitical situation surrounding the war in Ukraine?<br>The Q1 Quarterly Report 2022 presents the first detailed figures on the reality of NFTs markets.<br>This quarter, we had the chance to interview Shaban Shaame, a pioneer of Blockchain Gaming since 2014, who shares his vision and thoughts on the state of the industry.</p>



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</div>


The general public seems to be losing interest in NFTs, if the search volume on Google is to be believed.
Collectibles are the predominant segment in the industry, far ahead of Art or even the Metaverses.

The resale profit volume is down 3% while the total loss volume is up nearly 50% compared to the previous quarter.
For the first time, some segments show a negative balance: Gaming shows a total loss of almost $50 million on the segment, which makes it the least profitable segment of the industry from a trading point of view.

With nearly $8 billion traded in the first quarter of 2022, the market cannot really be considered to have collapsed. We are seeing more of a form of stabilization, in line with the last quarter of 2021.
Conversely, the volume of sales fell by nearly 50%, with a very marked slowdown in the volume of buyers and sellers.
The great novelty of this quarter is undoubtedly the evolution of profitability in the markets. Making a profit in NFTs is no longer so easy in 2022...


<p>Every year since 2018, NonFungible.com publishes “Yearly NFT Market Report” which remains to date the most in-depth and comprehensive piece of research about the NFT Industry</p>



<p>These reports are designed for curious newcomers as well as experienced investors.</p>


Collectibles is probably the segment that is running out of steam in favor of Metaverses and Blockchain Gaming.

With over $5 billion in profit recorded in NFT trading, speculation is an integral part of this market. But this is a more complex activity than it seems...

Markets gradually became saturated with the issuance of millions of new NFTs. How have the markets reacted to this unbridled multiplication of assets?

The market boomed to over $15 billion for nearly 2 million active wallets.

"NFT" was declared word of the year 2021. This is not surprising given the exponential growth of the industry. Between unprecedented opportunities, excessive speculation and new economic models: where are we?

The 200 pages, 70 metrics and 15 interviews of this report have been designed to give you the most complete and up-to-date overview of the different facets of the NFT industry.

Yearly NFT Market Report

2021


<p>Data doesn’t lie, at NonFungible we analyze it and make the complex simple and freely accessible for everyone.</p>



<p>Our Q3 Report looks into Non-Fungible Token trends on the Ethereum chain. We use our data to provide an in depth analysis of the market backed with charts and analytics.</p>


Q3 of 2021 broke the $billion threshold by a long way, with almost $6 billion traded on the Ethereum blockchain alone. All indicators continue to show an upwards trend, with the number of wallets in use of both buyers and sellers increasing significantly.

Record USD volume for NFT sales

Unsurprisingly, the collectibles segment generated the most USD volume this quarter, undoubtedly stemming from PFP hype but also from the continual increase in the price of CryptoPunks and Bored Ape Yacht Club.

Market Distribution

The recent growth of the NFT industry has been almost unbelievable. In just a few short months, the $billion-dollar mark has been crossed in traded NFTs, followed by $billion per quarter and only then to be surpassed by $billion per month.

The market we see evolving today is a market that is growing at an exponential rate, with unprecedented liquidity but it is also even more of a speculative and volatile market than ever before.

The current market growth dictates that all investors and NFT stakeholders should pay extra attention as Triple-digit growth goes hand in hand with market instability, unrealistic expectations and potential disappointments.


<h2>A Space Full of Promises</h2>



<p> The NFT market experienced an euphoric period in 2021, which allowed for global testing of its potential and promises. And there have been many promises:</p>



<ul><li>&#8220;True ownership&#8221;</li><li>Data immortality</li><li>Censorship-resistant</li><li>Paradigm shift in the art world</li><li>Artist valuation</li><li>Lifetime royalties</li></ul>



<p>These promises, which are goals, were perhaps perceived as givens, and many were disappointed with their Web3 experience. Let&#8217;s be honest: the market was too young to fulfill all of these.</p>



<p>Yet, here we are in mid-2023, and the NFT ecosystem continues to advance every day, one step at a time, sometimes under difficult conditions. For example, the NFT standard for royalties (<a href="https://eips.ethereum.org/EIPS/eip-2981" target="_blank" rel="noreferrer noopener">EIP-2981</a>) has been increasingly used, but Opensea was slow to integrate it&#8230; then <a href="https://nftnow.com/news/nft-marketplace-wars-blur-tells-users-to-ban-opensea/" target="_blank" rel="noreferrer noopener">a war between NFT marketplaces</a> erupted. Amid the bidding war of initiatives aimed at optimizing transaction fees as much as possible, one move unanimously angered the artist community: <a href="https://www.coindesk.com/web3/2022/10/27/nft-marketplace-looksrare-switches-to-optional-royalties/" target="_blank" rel="noreferrer noopener">the removal of &#8220;creators&#8217; fees&#8221; or royalties</a>. Faced with the pressure, the marketplaces partially backtracked and left the choice to users whether or not to pay royalties.</p>



<p>With the arrival of <a href="https://decrypt.co/resources/what-are-ordinals-a-beginners-guide-to-bitcoin-nfts" target="_blank" rel="noreferrer noopener">Ordinals</a>, the promise of immortality and censorship resistance is fulfilled. The debate over block size has long been resolved by the Bitcoin community, so the question now is which masterpiece deserves to exist forever.</p>



<p>However, the naive atmosphere of 2018-2019 is gone. The NFT market is maturing, and so is the digital art market. Despite some objections, promises continue to be fulfilled, and more are yet to come, particularly thanks to <a href="https://ethereum.org/en/roadmap/account-abstraction/" target="_blank" rel="noreferrer noopener">account abstraction</a>. But before we get too carried away with the future, let&#8217;s take a comprehensive look at the art market, and more specifically, the current state of royalties for artists.</p>



<h2>Methodology</h2>



<p>For this report, we used only on-chain transactions of ERC-721 tokens on Ethereum. Of all the NFT transfers, a significant portion cannot be considered as an integral part of the market (tests, bots, wash-trading, etc.) and therefore, have been removed from this report.</p>



<p>From April 2018 to July 2023, 398 individual Smart Contracts on Ethereum were taken into account for this study, out of a total of 10,915 Smart Contracts tracked. Here are the main marketplaces collections observed, :</p>



<ul><li><a href="https://nonfungible.com/market-tracker/superrare" target="_blank" rel="noreferrer noopener">SuperRare</a></li><li><a href="https://nonfungible.com/market-tracker/knownorigin" target="_blank" rel="noreferrer noopener">Known Origin</a></li><li><a href="https://nonfungible.com/market-tracker/foundation" target="_blank" rel="noreferrer noopener">Foundation</a></li><li><a href="https://nonfungible.com/market-tracker/makersplace" target="_blank" rel="noreferrer noopener">Makersplace</a></li><li><a href="https://nonfungible.com/market-tracker/artblocks" target="_blank" rel="noreferrer noopener">Art Blocks</a></li></ul>



<p>Royalties have been calculated based on sales in the secondary market and vary depending on the fees taken by the marketplaces for the sales that took place on them. To find out what the artist received, the percentage taken by the marketplace was deducted from the amount of transaction fees, excluding gas fees.</p>



<p>Here are the percentages taken by each marketplace on the secondary market:</p>



<ul><li>SuperRare: 3%</li><li>Opensea: 2.5%</li><li>Known Origin: 2.5%</li><li>Makersplace: 2.5%</li><li>Foundation: 5%</li><li>Rarible: 1%</li></ul>



<p>Note that starting from January 2023, royalties have become optional on Opensea and other marketplaces.</p>



<h2>Art and NFT : Global Statistics</h2>


<div class="wp-block-image">
<figure class="aligncenter size-full"><img loading="lazy" width="724" height="546" src="http://100.96.1.66:3001/app/uploads/2023/09/nft-art-global-stats.jpg" alt="nft art global stats" class="wp-image-288754" srcset="http://100.96.1.66:3001/app/uploads/2023/09/nft-art-global-stats.jpg 724w, http://100.96.1.66:3001/app/uploads/2023/09/nft-art-global-stats-300x226.jpg 300w" sizes="(max-width: 724px) 100vw, 724px" /><figcaption>Global statistics of the NFT Art market</figcaption></figure></div>


<p>Like the rest of the NFT market, August 2021 marked a turning point in the art sector. The peak is particularly explained by Art Blocks, which generated a sales volume of $657 million, representing 77% of the total volume for August 2021. This percentage has gradually decreased to make room for individual creators&#8217; smart contracts.</p>



<p>The sale of Beeple&#8217;s work in February 2021 was as much a trigger for the NFT &#8220;bull market&#8221; as the war in Ukraine in March 2022 was an end marker. Since then, volumes have decreased despite the proliferation of art-focused marketplaces and the entry of traditional auction houses.</p>



<h2>Art Collectors Are For NFT Royalties</h2>


<div class="wp-block-image">
<figure class="aligncenter size-full"><img loading="lazy" width="782" height="548" src="http://100.96.1.66:3001/app/uploads/2023/09/nft-art-royalties-share-fees-sales.jpg" alt="nft art royalties share fees sales" class="wp-image-288689" srcset="http://100.96.1.66:3001/app/uploads/2023/09/nft-art-royalties-share-fees-sales.jpg 782w, http://100.96.1.66:3001/app/uploads/2023/09/nft-art-royalties-share-fees-sales-300x210.jpg 300w, http://100.96.1.66:3001/app/uploads/2023/09/nft-art-royalties-share-fees-sales-768x538.jpg 768w" sizes="(max-width: 782px) 100vw, 782px" /><figcaption>Share of the fees paid by NFT collectors through time</figcaption></figure></div>


<p>The issue of royalties has always been central to the NFT ecosystem. For the art market, many worried voices have risen at the end of 2022 because of Blur&#8217;s relentlessness to remove royalties from sales.<br>Collateral victim, the art market has not been spared by this war between marketplace and the number of sales with fees worth less than 5% the sale price has radically increased to reach 70% of the volume in April 2023. By leaving the fees and royalties optional for collectors, it would seem that Opensea has returned the hot potato of responsibility directly to users, who have not deprived themselves of paying less fees. </p>



<p>But despite this shock, the percentage of the number of transactions at 0% royalties has not changed much since the beginning of 2023. It seems that the artistic sector has been heard by collectors: <strong>even if it is time to save money because of the bear market, support for artists remains here</strong>.</p>



<h2>NFT Marketplaces volume</h2>


<div class="wp-block-image">
<figure class="aligncenter size-large"><img loading="lazy" width="1024" height="585" src="http://100.96.1.66:3001/app/uploads/2023/09/USD-Volume-marketplaces-nft-1024x585.jpg" alt="USD Volume marketplaces nft" class="wp-image-288697" srcset="http://100.96.1.66:3001/app/uploads/2023/09/USD-Volume-marketplaces-nft-1024x585.jpg 1024w, http://100.96.1.66:3001/app/uploads/2023/09/USD-Volume-marketplaces-nft-300x171.jpg 300w, http://100.96.1.66:3001/app/uploads/2023/09/USD-Volume-marketplaces-nft-768x439.jpg 768w, http://100.96.1.66:3001/app/uploads/2023/09/USD-Volume-marketplaces-nft.jpg 1070w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Tota USD volume per NFT marketplaces</figcaption></figure></div>


<p>Sales volume was concentrated on the first NFT art marketplaces such as SuperRare, Known Origin or Makerplaces until August 2021. The arrival of Artblocks and Foundation then opened the door to a larger secondary market that took place on Opensea. In addition to these two new art marketplaces, the number of individual smart contracts experienced a strong growth in 2021, further accentuating the sales volume on Opensea.</p>



<p>The total USD volume of each marketplace is:</p>



<ul><li>Opensea: $1,165,440,863</li><li>SuperRare: $283,058,027</li><li>ArtBlocks: $247,670,326</li><li>Foundation: $138,697,370</li><li>Makerplace: $24,601,867</li><li>Known Origin: $21,013,247</li></ul>



<p>With more than one billion volumes, Opensea is undoubtedly the marketplace that has the most volume on the primary and secondary market combined. This is explained in particular by the prices on the secondary market which soared in 2021 but also the increase in personal smart contracts since that period. In the absence of an internal marketplace, the volume was therefore concentrated on Opensea. Despite a low number of sales, SuperRare occupies the 2nd place with $283,058,027 in volume, confirming its place as the leading marketplace specializing in art.</p>



<p>With an average monthly volume of $2,102,499 for the first half of 2023, the NFT art market has evolved dramatically since 2018. Indeed, recall that this average was $981 in 2018, $ 6,581 in 2019 and $ 151,321 in 2020. In 2021 and 2022, it was $15,649,496 and $10,075,242 respectively.</p>



<h2>Fees Earned by NFT Marketplace</h2>



<figure class="wp-block-image size-full"><img loading="lazy" width="947" height="512" src="http://100.96.1.66:3001/app/uploads/2023/09/fees-nft-marketplace.jpg" alt="fees nft marketplace" class="wp-image-288702" srcset="http://100.96.1.66:3001/app/uploads/2023/09/fees-nft-marketplace.jpg 947w, http://100.96.1.66:3001/app/uploads/2023/09/fees-nft-marketplace-300x162.jpg 300w, http://100.96.1.66:3001/app/uploads/2023/09/fees-nft-marketplace-768x415.jpg 768w" sizes="(max-width: 947px) 100vw, 947px" /><figcaption>Fees earned by NFT marketplace through time</figcaption></figure>



<p>Combining the fees collected on the primary and secondary market, the total volume of the 7 main marketplaces represents $93,858,531. SuperRare is the marketplace that represents the largest volume as of July 1, 2023 with $32,732,362 then Foundation with $21,865,617 and Opensea with $19,276,549.</p>


<div class="wp-block-image">
<figure class="aligncenter size-full is-resized"><img loading="lazy" src="http://100.96.1.66:3001/app/uploads/2023/09/fees-earned-marketplace-usd.jpg" alt="fees earned marketplace usd" class="wp-image-288706" width="486" height="442" srcset="http://100.96.1.66:3001/app/uploads/2023/09/fees-earned-marketplace-usd.jpg 584w, http://100.96.1.66:3001/app/uploads/2023/09/fees-earned-marketplace-usd-300x273.jpg 300w" sizes="(max-width: 486px) 100vw, 486px" /><figcaption>All time fees earned by NFT marketplaces</figcaption></figure></div>


<p>The fees collected are mainly concentrated on artistic marketplaces including the secondary market.<br>The volume on Opensea concerns individual art collections that did not have a dedicated marketplace to sell their works. Rarible, despite its low fees, recovered $237,375 in market fees.</p>



<p>Representing 79% of the costs recovered, artistic marketplaces dominate the artistic royalty market compared to more general marketplaces such as Opensea or Rarible</p>



<h2>Primary Art Market </h2>


<div class="wp-block-image">
<figure class="aligncenter size-large"><img loading="lazy" width="1024" height="702" src="http://100.96.1.66:3001/app/uploads/2023/09/primary-market-nft-artists-usd-1024x702.jpg" alt="primary market nft artists usd" class="wp-image-288710" srcset="http://100.96.1.66:3001/app/uploads/2023/09/primary-market-nft-artists-usd-1024x702.jpg 1024w, http://100.96.1.66:3001/app/uploads/2023/09/primary-market-nft-artists-usd-300x206.jpg 300w, http://100.96.1.66:3001/app/uploads/2023/09/primary-market-nft-artists-usd-768x526.jpg 768w, http://100.96.1.66:3001/app/uploads/2023/09/primary-market-nft-artists-usd.jpg 1045w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Primary sales and USD volume through time</figcaption></figure></div>


<p>The primary market is the preferred source of income for artists. With a total of $411,581,497 for 665,069 sales, this market that exploded in 2021 balanced in 2022 at levels higher than 2020. </p>



<p>This decline in sales can be explained by several factors: </p>



<ul><li>collectors prefer &#8220;safe&#8221; purchases like XCOPY or Fidenza on the secondary market</li><li>The artists who arrived in 2021 did not stay</li><li>The bear market makes it very difficult for individuals to buy</li></ul>



<p>It is in this environment that artists, however more numerous compared to 2020, must evolve.</p>


<div class="wp-block-image">
<figure class="aligncenter size-full"><img loading="lazy" width="487" height="416" src="http://100.96.1.66:3001/app/uploads/2023/09/primary-average-mediane-usd.jpg" alt="primary average mediane usd" class="wp-image-288714" srcset="http://100.96.1.66:3001/app/uploads/2023/09/primary-average-mediane-usd.jpg 487w, http://100.96.1.66:3001/app/uploads/2023/09/primary-average-mediane-usd-300x256.jpg 300w" sizes="(max-width: 487px) 100vw, 487px" /><figcaption>All time Primary USD &#8211; Average vs Mediane</figcaption></figure></div>


<p>Although the volumes for the artistic sector are high, it is nevertheless necessary to relativize the success of the artists who embark on it. Taking all the volume since 2018, the average primary market sales is $67,762 but looking at the median, it only stands at $3,588.</p>



<p>This disparity is explained by the volumes generated by significant primary sales of a minority of collections (Pak, Hackatao, XCOPY&#8230;) but are not representative of the majority of the market.</p>



<h2>Artists, NFT and Royalties</h2>


<div class="wp-block-image">
<figure class="aligncenter size-full"><img loading="lazy" width="1021" height="538" src="http://100.96.1.66:3001/app/uploads/2023/09/royalties-nft-USD-artists.jpg" alt="royalties nft USD artists" class="wp-image-288718" srcset="http://100.96.1.66:3001/app/uploads/2023/09/royalties-nft-USD-artists.jpg 1021w, http://100.96.1.66:3001/app/uploads/2023/09/royalties-nft-USD-artists-300x158.jpg 300w, http://100.96.1.66:3001/app/uploads/2023/09/royalties-nft-USD-artists-768x405.jpg 768w" sizes="(max-width: 1021px) 100vw, 1021px" /><figcaption>Royalties earned by artists and creators through time</figcaption></figure></div>


<p>Combining the fees collected on the primary and secondary market, the total volume of the 7 main marketplaces represents $93,858,531. SuperRare is the marketplace that represents the largest volume as of July 1, 2023 with $32,732,362 then Foundation with $21,865,617 and Opensea with $19,276,549.</p>



<p>Although the primary market seems much less important than the secondary market at first glance, in reality it is the main source of income for artists and creators. But do all artists manage to sell in the same way?</p>


<div class="wp-block-image">
<figure class="aligncenter size-full"><img loading="lazy" width="941" height="752" src="http://100.96.1.66:3001/app/uploads/2023/09/top-100-vs-other-nft-project.jpg" alt="top 100 vs other nft project" class="wp-image-288726" srcset="http://100.96.1.66:3001/app/uploads/2023/09/top-100-vs-other-nft-project.jpg 941w, http://100.96.1.66:3001/app/uploads/2023/09/top-100-vs-other-nft-project-300x240.jpg 300w, http://100.96.1.66:3001/app/uploads/2023/09/top-100-vs-other-nft-project-768x614.jpg 768w" sizes="(max-width: 941px) 100vw, 941px" /><figcaption>All time Primary USD Volume per project and artists</figcaption></figure></div>


<p>Combining all artists and artistic projects the top 100 in terms of USD volume in the primary market represent nearly 58% of the NFT art market. In the absence of Nifty Gateway&#8217;s on-chain data for the primary market, some sales like Xcopy&#8217;s Max Pain were not included in this analysis.</p>



<h2>Is This Adoption ?</h2>



<p>What if we had already reached our goal without knowing it? Adoption is here, with different players of all sizes wanting to try, innovate and experiment every day.&nbsp; The euphoria has disappeared to give way to projects that must convince, works that must surpass themselves in the face of ever more educated eyes and marketplaces that speak to ancestral auction houses&#8230;</p>


<div class="wp-block-image">
<figure class="aligncenter size-full"><img loading="lazy" width="562" height="452" src="http://100.96.1.66:3001/app/uploads/2023/09/average-mediane-artists-usd.jpg" alt="average mediane artists usd" class="wp-image-288730" srcset="http://100.96.1.66:3001/app/uploads/2023/09/average-mediane-artists-usd.jpg 562w, http://100.96.1.66:3001/app/uploads/2023/09/average-mediane-artists-usd-300x241.jpg 300w" sizes="(max-width: 562px) 100vw, 562px" /><figcaption>All time Royalties USD &#8211; Average vs Mediane</figcaption></figure></div>


<p>Looking at the USD average since 2018, the impression is given that it is possible to earn about $9000 through the secondary market but in reality, up to 50% of the 6000 artists and art projects earned only $15 in royalties. While marketplaces facilitate the visibility of artists, they must promote their work on their own.</p>



<p>Some excel, others less so. These complementarities create connections and form new &#8220;organized artist groups&#8221; that continue to test and experiment in chat rooms. Now that the risks are better understood every day, what will be the next step?</p>


Many artists and creators are worried about NFT marketplaces' decisions regarding royalties. Let's take a look at the data...

NFT, Art and Royalties


<h2>From ‘Free to Play’ to ‘Play to Earn’ to ‘Free to Own’</h2>



<p>Today, to play a video game, there are several possible options. The first, the most classic, is to buy the game to be able to play it. Soon, another model appeared, the &#8216;free to play&#8217; (F2P) which allows you to play the game for free with theoretically the possibility of finishing it. True, Free to Play games are free but many mini in-game purchases are pretty much required to improve your character, unlock quests or buy bonuses and so on..</p>



<p>Since 2018, a term has gained popularity to designate games that allow you to win NFTs or crypto: the &#8216;<a href="http://nonfungible.com/academy/nft/gamefi-play-to-earn" target="_blank" rel="noreferrer noopener">Play to Earn</a>&#8216;. After the crypto market crash at this time, a great public disinterest followed. But users who patiently suffered the pain were eventually treated with generous giveaways from <a href="http://nonfungible.com/market-tracker/axieinfinity" target="_blank" rel="noreferrer noopener">Axie Infinity</a>, <a href="http://nonfungible.com/market-tracker/thesandbox" target="_blank" rel="noreferrer noopener">The Sandbox</a>, <a href="http://nonfungible.com/market-tracker/decentraland" target="_blank" rel="noreferrer noopener">Decentraland</a> and <a href="https://godsunchained.com/" target="_blank" rel="noreferrer noopener">Gods Unchained</a>.</p>



<p>&#8216;Play to Earn&#8217; has subsequently become a marketing argument for many concepts: &#8216;Play and Earn&#8217;, &#8216;Move to Earn&#8217;, &#8216;Own to Earn&#8217; and today <a href="https://digidaigaku.com/" target="_blank" rel="noreferrer noopener">DidiDaigaku</a> offers &#8216;Free to Own&#8217;.</p>



<h2>What do we own with DigiDaigaku?</h2>



<p>Difficult to know because there is very little information available about the project to date. With no roadmap announced and no Whitepaper available, getting informed about the stages of the project you have to put your trust into the Twitter account of the CEO Gabriel Leydon.</p>



<p>&#8216;Free to Own&#8217; is the main concept of <a href="http://nonfungible.com/market-tracker/digidaigaku" target="_blank" rel="noreferrer noopener">DigiDaigaku</a>. Given the dazzling success of the collection, this concept deserves our attention. &#8216;Real ownership&#8217; being a strong principle of Web3, what do you really have when buying an NFT from DigiDaigaku?</p>



<p>First of all, reading the <a href="https://digidaigaku.com/tos.pdf" target="_blank" rel="noreferrer noopener">GCU</a>, it would seem that the owner of the NFT does not have much right to the reuse of the work contained in the token. In addition, the .json file is hosted centrally on their server.</p>


<div class="wp-block-image">
<figure class="aligncenter"><img src="https://lh5.googleusercontent.com/b5aeVrPD4JFl7jE0pwLk8gebl9aVIsaiUBPhK9WOvwjn9Z9S022Xkel--tgKmXHV85zKy6CUEQFH7ke_KFJlNZ0S292c-gE7__mch2Ce4WLmRPxH8fjFL4vmhagPgTry70aRYq5gPfWI2_MEMCw_gCBh98wflAM09XnBl3OwxnRweVL-WhqJLx3FZwBe" alt=""/></figure></div>


<p>It&#8217;s normal to want to adjust settings along the way for video game assets. But in the strict sense of &#8220;real possession&#8221;, it would seem here that the buyer does not own that much.</p>



<h2>Analysis of the DigiDaigaku Free Mint.</h2>



<p>The major marketing point of this project is that it’s free! Undeniable fact: the mint was free. Only, the mint was &#8216;stealthy&#8217;. This means that a limited number of people were aware that it was coming. Let&#8217;s go into more detail about this mint through an analysis of the hard NFT data.</p>



<p>On August 9,<a href="https://web.archive.org/web/20220809185449/https:/twitter.com/gabrielleydon/status/1557077395290480641" target="_blank" rel="noreferrer noopener"> Gabriel Leydon announced that DigiDaigaku&#8217;s mint</a> was open. Announcement taken up by<a href="https://twitter.com/limitbreak/status/1557077488399921153" target="_blank" rel="noreferrer noopener"> Limit Break</a> in the aftermath. With a mint limit of 1 NFT per wallet, we counted 1926 unique wallets that were able to participate in this mint. Remember that a wallet does not represent a real user. Please note:</p>



<ul><li>The contract deployer has mined 97 (from asset ID #3 to #99).</li><li>The first two NFTs were mined by two unique wallets. These two NFTs were transferred to the deployer after being mined.&nbsp;</li></ul>



<p>After the first 100 NFTs, the mint lasted 13 minutes before ending. Sales soared and in one hour the price of sales stabilized around $1000 until the end of the day. Even though the mint was free, the least we could say was that it was not fair to everyone. In addition, access to the project quickly became out of reach for lower-budget users.</p>



<h2>Analysis of the DigiDaigaku Minters</h2>



<p>Given the speed with which the collection has been minted and its stealth nature, it may be interesting to look further into the wallets that participated in this event. Taking the number of sales per wallet as the main indicator, here is a summary table of their performance.</p>


<div class="wp-block-image">
<figure class="aligncenter size-large"><img loading="lazy" width="1024" height="576" src="http://100.96.1.66:3001/app/uploads/2022/09/digidaigaku-minters-performance-1024x576.jpg" alt="digidaigaku minters performance" class="wp-image-66912" srcset="http://100.96.1.66:3001/app/uploads/2022/09/digidaigaku-minters-performance-1024x576.jpg 1024w, http://100.96.1.66:3001/app/uploads/2022/09/digidaigaku-minters-performance-300x169.jpg 300w, http://100.96.1.66:3001/app/uploads/2022/09/digidaigaku-minters-performance-768x432.jpg 768w, http://100.96.1.66:3001/app/uploads/2022/09/digidaigaku-minters-performance.jpg 1280w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>DigiDaigaku Minters Performance</figcaption></figure></div>


<p>For this analysis, we considered data from August 9th, 2022 to September 4th, 2022. Sales that took place on Sudoswap were identified as transfers, so sales that took place on that exchange were not taken into account.</p>



<p>Of the 930 addresses that made 0 sales, 776 had only the interaction of sending their NFT to another address. It was also this group that made the most purchases (81) for a total of $165,578.</p>



<p>The 879 addresses that made 1 sale generated $1,165,340 in volume with an average price of $1,325. We identified 11 purchases for an average of 65.82 dollars. The detail is given in the table above, but addresses with more than two sales represent 515 sales for a total of $1,605,701.</p>



<h2>Activity of DigiDaigaku NFTs</h2>



<p>Regarding the assets themselves, let&#8217;s take a closer look at their activities. Sales were separated from transfers with the exception of sales that took place on Sudoswap being counted as transfers.</p>



<p>DigiDaigaku #826 has been sold 10 times and has 12 transfers. Other assets also have a significant number of transfers:</p>



<ul><li>#1730 has been transferred 20 times for 2 sales.</li><li>#626, 19 times for 3 sales.</li><li>#216, 18 times for 4 sales.</li><li>#308, 17 times for one sale.</li></ul>



<p>These few NFTs show abnormally high activity compared to other NFT transfers. NFTs transferred from 1 to 5 times represent 4114 transfers or 89% of total transfers.</p>



<h2>DigiDaigaku Analysis Conclusions</h2>



<p>What can we conclude from this data? Our first analysis of the DigiDaigaku&#8217;s mint published on social networks last week highlighted the profits generated by the different buyers of this collection. Only, the USD indicator alone can be misleading and after a month of DigiDaigaku&#8217;s mint, it seemed necessary to us to be more precise about this collection.</p>



<p>Although the mint was free, its stealth aspect, which is reserved for a small group of individuals, calls into question its supposed accessibility. Despite the August 9th entry price of more than $12,000, the usefulness of the DigiDaigaku Genesis is still not displayed on the project website.</p>



<p>It is therefore difficult to continue to discuss any gratuity. In view of the license of use for collectors which is very restrictive and greedy in its data collection, it is hard to know what anyone really owns..!</p>



<p>With no real usability and with a team still forming, it would seem that the interpretation of the &#8216;Free to Own&#8217; model is the subject of strong speculation. <a href="https://twitter.com/gabrielleydon/status/1567262869577961472" target="_blank" rel="noreferrer noopener">Gabriel Leydon explained the possibilities</a> offered by the airdrop received (the Spirits) but it will surely be necessary to be very patient before being able to test the promised adventure game in full.</p>



<p>This is one project that has exhibited the importance of digging into the data to get a full picture of its current and past behavior and real community.</p>



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During the month of August, one project has been much talked about: DigiDaigaku, let's take a look back at this project.

DigiDaigaku: not so ‘Free to Own’


<p>CryptoPunks and Bored Ape Yacht Club (BAYC), the two main NFT Profile for Picture projects (PFP), have long been fighting for market monopoly. <strong>Has this competitive era now ended?&nbsp;</strong></p>



<p>In a landmark acquisition Yuga Labs, creator of BAYC, has recently purchased the intellectual property of both the CryptoPunks and Meebits collections from OG creators Larva Labs.</p>



<p>Let&#8217;s take a look at this rivalry over time and the potential consequences of these projects unification.</p>



<h2><strong>Back to the rivalry between BAYC and CryptoPunks</strong></h2>



<p>Punks and BAYC are two pivotal collections made up of 10,000 NFTs each. The first was launched in June 2017 and could be minted for free for those willing to pay the gas fees, the second was launched in April 2021 and offered at 0.08 ETH.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1280" height="720" src="http://100.96.1.66:3001/app/uploads/2022/03/BAYC-vs-CryptoPunks-USD-Volume.jpg" alt="BAYC vs CryptoPunks USD Volume" class="wp-image-19307" srcset="http://100.96.1.66:3001/app/uploads/2022/03/BAYC-vs-CryptoPunks-USD-Volume.jpg 1280w, http://100.96.1.66:3001/app/uploads/2022/03/BAYC-vs-CryptoPunks-USD-Volume-300x169.jpg 300w, http://100.96.1.66:3001/app/uploads/2022/03/BAYC-vs-CryptoPunks-USD-Volume-1024x576.jpg 1024w, http://100.96.1.66:3001/app/uploads/2022/03/BAYC-vs-CryptoPunks-USD-Volume-768x432.jpg 768w" sizes="(max-width: 1280px) 100vw, 1280px" /><figcaption><em> BAYC vs CryptoPunks &#8211; USD Volume </em></figcaption></figure></div>



<p>In this chart, the USD sales volume of CryptoPunks as well as the three collections of the Bored Ape family (Bored Ape Yacht Club, Bored Kennel Yacht Club and Bored Mutant Yacht Club) were taken into account.</p>



<p>Interestingly, a flippening took place in early October 2021 and this trend has never reversed since and has even been accentuated with <strong>the floor price of BAYC surpassing that of CryptoPunks</strong> for the first time at the beginning of January 2022. On January 4, the BAYC floor price reached 69 ETH while the Punks floor was 68 ETH and since then Bored Apes has remained on top.</p>



<p>Currently, the lowest priced Punk for sale is 69.7 ETH (about $180,500) while Apes are trading for a minimum of 96 ETH (about $250,000).</p>



<figure class="wp-block-image size-full"><img loading="lazy" width="1280" height="720" src="http://100.96.1.66:3001/app/uploads/2022/03/BAYC-vs-CryptoPunks-number-of-sales.jpg" alt="BAYC vs CryptoPunks number of sales" class="wp-image-19305" srcset="http://100.96.1.66:3001/app/uploads/2022/03/BAYC-vs-CryptoPunks-number-of-sales.jpg 1280w, http://100.96.1.66:3001/app/uploads/2022/03/BAYC-vs-CryptoPunks-number-of-sales-300x169.jpg 300w, http://100.96.1.66:3001/app/uploads/2022/03/BAYC-vs-CryptoPunks-number-of-sales-1024x576.jpg 1024w, http://100.96.1.66:3001/app/uploads/2022/03/BAYC-vs-CryptoPunks-number-of-sales-768x432.jpg 768w" sizes="(max-width: 1280px) 100vw, 1280px" /><figcaption><em>BAYC vs CryptoPunks &#8211; Number of sales</em></figcaption></figure>



<p>Looking at the volume of sales between the two rivals, it is very clear that the volume is much larger for the Ape family.</p>



<p>This is explained by significant demand on one hand, but also in relation to the entry price which was much lower than that of CryptoPunks at that time.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1280" height="720" src="http://100.96.1.66:3001/app/uploads/2022/03/BAYC-vs-CryptoPunks-average-USD.jpg" alt="BAYC vs CryptoPunks average USD" class="wp-image-19303" srcset="http://100.96.1.66:3001/app/uploads/2022/03/BAYC-vs-CryptoPunks-average-USD.jpg 1280w, http://100.96.1.66:3001/app/uploads/2022/03/BAYC-vs-CryptoPunks-average-USD-300x169.jpg 300w, http://100.96.1.66:3001/app/uploads/2022/03/BAYC-vs-CryptoPunks-average-USD-1024x576.jpg 1024w, http://100.96.1.66:3001/app/uploads/2022/03/BAYC-vs-CryptoPunks-average-USD-768x432.jpg 768w" sizes="(max-width: 1280px) 100vw, 1280px" /><figcaption><em>BAYC vs CryptoPunks &#8211; Average USD price</em></figcaption></figure></div>



<p>CryptoPunk #7523, one of nine very rare Alien Punks, was sold for a record $11.8 million by Sotheby&#8217;s. On the Larva Labs marketplace, the highest selling price was CryptoPunk #4156 for $10.26 million.</p>



<p>The on-chain sale record for the Bored Apes collection was lower, with Ape number #2087 selling for 769 ETH. BAYC #8817, the third rarest golden fur Ape, selling for a record $3.4 million at a Sotheby&#8217;s auction in October 2021.</p>



<h3>How to explain this trend?</h3>



<p>BAYC are much more recent and ultimately took the inspiration of creating randomly generated avatars from CryptoPunks. However, the creators of BAYC have taken the concept to another level by presenting the collection as an exclusive social organization and offering additional benefits.</p>



<p>In addition, BAYC has more generous intellectual property rights compared to CryptoPunks.&nbsp; Jimmy McNelis, owner of 3 Bored Apes and 1 Mutant Ape, was able to create a virtual music band called Kingship with Universal Music.</p>



<figure class="wp-block-embed aligncenter is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true"><p lang="en" dir="ltr">NEWSFLASH: UMG’s next-gen label 10:22PM forms 𝐊𝐈𝐍𝐆𝐒𝐇𝐈𝐏, the First-Ever Group Consisting of NFT Characters from Bored Ape Yacht Club.🐒 <a href="https://t.co/zMSAq4HI2Z">pic.twitter.com/zMSAq4HI2Z</a></p>&mdash; Universal Music Group (@UMG) <a href="https://twitter.com/UMG/status/1458905852392325130?ref_src=twsrc%5Etfw">November 11, 2021</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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<p>The adoption of BAYCs by celebrities has also accelerated the trend. For example, celebrities such as Justin Bieber, Eminem, Snoop Dog, Stephan Curry, Timbaland, Steve Aoki, Serena Williams and Paris Hilton own an Ape. BAYC reportedly has a concierge service that helps celebrities become owners, unlike Larva Labs, which doesn&#8217;t do much in that direction.</p>



<p>Cozomo de Medici summed up the &#8220;flippening&#8221; reasons well <a href="https://twitter.com/CozomoMedici/status/1503494873827069952" target="_blank" rel="noreferrer noopener">in a tweet</a>:&nbsp;</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="597" height="389" src="http://100.96.1.66:3001/app/uploads/2022/03/cozomo-de-medici-larva-labs.png" alt="cozomo de medici larva labs" class="wp-image-19309" srcset="http://100.96.1.66:3001/app/uploads/2022/03/cozomo-de-medici-larva-labs.png 597w, http://100.96.1.66:3001/app/uploads/2022/03/cozomo-de-medici-larva-labs-300x195.png 300w" sizes="(max-width: 597px) 100vw, 597px" /></figure></div>



<h2><strong>Yuga Labs acquires CryptoPunks and Meebits collections</strong></h2>



<p>Yuga Labs acquired not only the intellectual property of the CryptoPunks but also the Meebit collections from Larva Labs.</p>



<p>As part of this acquisition, Yuga Labs owns the copyright to the CryptoPunks and Meebits collections. As well as 423 Punks and 1711 Meebits. With this transaction, they will own the trademarks and logos for both collections.</p>



<p>Yuga Labs plans to transfer the intellectual property, commercial rights and licensing rights to the holders of the NFTs. The company plans to grant CryptoPunks and Meebits the same commercial rights that the holders of BAYC have.</p>



<p>The creators of CryptoPunks have been criticized for their lack of involvement with intellectual property rights and their commitment to the community, in response a statement was shared by the founders:&nbsp;</p>



<blockquote class="wp-block-quote"><p><em>« In many ways Yuga is the innovator of the model for the modern PFP project, and are the best people in the world at operating and growing these projects and communities around them. At the same time, we found they have deep respect for the history and origins of the NFT world, and want nothing more than to honor that while expanding its reach and size into popular culture at large. »</em></p></blockquote>



<p>Note that Larva Labs will continue to work on its other projects such as Road Trip and Autoglyphs.</p>



<h2><strong>Conclusion</strong></h2>



<p>A page is turned with this acquisition, but the previous rivalry had indirectly generated hype and engagement, two vital elements for a dynamic market. As in any market, competition can be healthy and with this acquisition, the rivalry between the two projects more or less ceases.&nbsp;</p>



<p>Is this acquisition of Yuga labs and its new dominance a good thing for the market? Is concentration a risk for the market? Some observers are already worried that Meta (ex-Facebook) might one day get its hands on Yuga Labs.</p>



<p>Will collectors turn to other projects for diversification? Whatever the outcome it’s likely that other PFP collections such as Doodle and Azuki will indirectly benefit from this new market dynamic..only time will tell on the future of NFT PFPs.</p>



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CryptoPunks and Bored Ape Yacht Club (BAYC), the two main NFT Profile for Picture projects (PFP), have long been fighting for market monopoly. Has this competitive era now ended? 

CryptoPunks VS Bored Ape Yacht Club: The Final Clap?


<p>Since 2018, we have been committed to bringing the clearest, most complete and understandable information to everyone interested in the NFT ecosystem.</p>



<p>NonFungible.com has worked for several years producing the most comprehensive and detailed reports ever published in the history of NFTs and this year is no exception to the rule.</p>



<h2>Why are we doing this report?</h2>



<p>All our reports are designed to cater for curious newcomers as well as experienced investors.</p>



<p>We thought 2020 had been a crazy year but in the end it was just a warm-up!</p>



<p>2021 was the year to beat all the records in the NFT ecosystem, and it did for us too. It&#8217;s a real pleasure for us to compile these illuminating reports from our data and witness the incredible growth we wished for all these years.In a few figures below we highlight our efforts in providing you with our largest and most in-depth report on NFTs to date:</p>



<ul><li>More than 1,000 hours of work.</li><li>5 people mobilized for nearly 4 months.</li><li>188 pages</li><li>More than 70 metrics including a large number of metrics never published before</li><li>15 interviews</li><li>4 languages (English, French, Korean, Chinese)</li></ul>



<p>So, this year, we wanted to think big, this year the report boasts 188 pages of exclusive and in depth content, offering the reader a truly global vision of the NFT Markets. The report has also been translated into several languages for further accessibility.</p>



<p>We hope you enjoy this report and all the insights you&#8217;ll gain about NFTs and their environment!</p>



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<h2>In summary, what will you find in this report?</h2>



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<p>First of all, here’s the summary of the report :</p>



<ul><li>The Fundamentals</li><li>The Report in 5 minutes (Pro version)</li><li>Looking back on 2021</li><li>Global Market Performance</li><li>Detailed Market Performance (Pro version)</li><li>Who are the buyers and collectors of NFTs? (Pro version)</li><li>Estimate the value and buy your first NFT</li><li>How to sell NFTs? (Pro version)</li><li>The profit generated in the NFT Market (Pro version)</li><li>Focus : Art – Collectibles – Gaming – Metaverse – Utility &amp; Finance</li><li>New jobs (Pro version)</li><li>The next big challenges</li><li>Our predictions for 2022 (Pro version)</li><li>General conclusions</li></ul>



<p>We mentioned it above, and you must have noticed it last year, the market just boomed over the past year.</p>



<p>Before looking at all these figures, it is important to know that we have separated “legitimate” activities from activities that can be related to wash trading.&nbsp;</p>



<p>We have identified a global volume of nearly $ 56 billion in NFT activity over 2021, a large part of which corresponds to “unqualified” volume (no project attached to Smart Contract, wash trading, NFT as financial collateral …).</p>



<p><strong>This report is focused on the volume identified as legitimate, qualified and that can be associated with an essentially human activity.</strong></p>



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<h2>2021 NFT Global market activity</h2>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="636" height="777" src="http://100.96.1.66:3001/app/uploads/2022/03/NFT-yearly-report-2021-global-stats.jpg" alt="NFT yearly report 2021 global stats" class="wp-image-17611" srcset="http://100.96.1.66:3001/app/uploads/2022/03/NFT-yearly-report-2021-global-stats.jpg 636w, http://100.96.1.66:3001/app/uploads/2022/03/NFT-yearly-report-2021-global-stats-246x300.jpg 246w" sizes="(max-width: 636px) 100vw, 636px" /><figcaption>  NonFungible.com Yearly Report 2021 &#8211; Global NFT Activity</figcaption></figure></div>



<p>As we can see, there has been an explosion of NFT activity in 2021. It is interesting to note that compared to previous years, NFTs were kept for less time.</p>



<p>The total value of all NFT transactions (which includes sales and all other transactions such as “breeding”, “minting” and renting) increased from $82,492,916 in 2020 to $17,694,851,721 in 2021; an increase of 21,350% or more than 200x.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="892" height="379" src="http://100.96.1.66:3001/app/uploads/2022/03/NFT-yearly-report-2021-primary-secondary-market.jpg" alt="NFT yearly report 2021 primary secondary market" class="wp-image-17609" srcset="http://100.96.1.66:3001/app/uploads/2022/03/NFT-yearly-report-2021-primary-secondary-market.jpg 892w, http://100.96.1.66:3001/app/uploads/2022/03/NFT-yearly-report-2021-primary-secondary-market-300x127.jpg 300w, http://100.96.1.66:3001/app/uploads/2022/03/NFT-yearly-report-2021-primary-secondary-market-768x326.jpg 768w" sizes="(max-width: 892px) 100vw, 892px" /><figcaption> NonFungible.com Yearly Report 2021 &#8211; Primary vs Secondary NFT Market</figcaption></figure></div>



<p>Market activity also increased significantly. The total number of active wallets making NFT transactions, including buying, selling, holding or using them in a blockchain application increased from 89,061 in 2020 to more than 2.5 million in 2021 (2,574,302); an increase of 1,822%.&nbsp;</p>



<p>The number of buyers rose from 75,144 in 2020 to 2,301,544 in 2021 (+2,962%) and the number of sellers increased from 31,774 to 1,197,796 (+3,669%).</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="750" height="590" src="http://100.96.1.66:3001/app/uploads/2022/03/NFT-yearly-report-2021-active-wallets.jpg" alt="NFT yearly report 2021 active wallets" class="wp-image-17607" srcset="http://100.96.1.66:3001/app/uploads/2022/03/NFT-yearly-report-2021-active-wallets.jpg 750w, http://100.96.1.66:3001/app/uploads/2022/03/NFT-yearly-report-2021-active-wallets-300x236.jpg 300w" sizes="(max-width: 750px) 100vw, 750px" /><figcaption>NonFungible.com Yearly Report 2021 &#8211; NFT buyers vs sellers vs active wallets</figcaption></figure></div>



<p>Throughout this period of rapid growth there were opportunities to capitalize on the speculative nature of the market and make significant profits.&nbsp;</p>



<p>Over $5.4 billion of total profit was generated when buying or reselling NFTs with 473 wallets generating over $1 million in profits during 2021. However, with less than 2 million active wallets buying or selling an NFT over the year, the market is still yet to reach mass adoption.</p>



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<h2>Focus on NFT segments</h2>



<p>For this report, each segment was analyzed under a microscope. Metaverse, Video Games, Art, Collectibles or Utility/Finance have all been the subject of dedicated focus. Meaning it is possible to see the losses and profits according to these different segments.</p>



<figure class="wp-block-image size-full"><img loading="lazy" width="897" height="378" src="http://100.96.1.66:3001/app/uploads/2022/03/NFT-yearly-report-2021-cumulative-profit-art.jpg" alt="NFT yearly report 2021 cumulative profit art" class="wp-image-17605" srcset="http://100.96.1.66:3001/app/uploads/2022/03/NFT-yearly-report-2021-cumulative-profit-art.jpg 897w, http://100.96.1.66:3001/app/uploads/2022/03/NFT-yearly-report-2021-cumulative-profit-art-300x126.jpg 300w, http://100.96.1.66:3001/app/uploads/2022/03/NFT-yearly-report-2021-cumulative-profit-art-768x324.jpg 768w" sizes="(max-width: 897px) 100vw, 897px" /><figcaption>  NonFungible.com yearly report 2021 &#8211; NFT Art Focus  </figcaption></figure>



<p>The diagram above displays the NFT Art market but we additionally offer the different projects analyzed. Taking the example of the Collectibles segment, it appears at first glance that it was mainly the CryptoPunks and Bored Ape Yacht Club collections that dominated the profit and loss indicator.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="811" height="714" src="http://100.96.1.66:3001/app/uploads/2022/03/NFT-yearly-report-2021-cumulative-profit-collectible.jpg" alt="NFT yearly report 2021 cumulative profit collectible" class="wp-image-17603" srcset="http://100.96.1.66:3001/app/uploads/2022/03/NFT-yearly-report-2021-cumulative-profit-collectible.jpg 811w, http://100.96.1.66:3001/app/uploads/2022/03/NFT-yearly-report-2021-cumulative-profit-collectible-300x264.jpg 300w, http://100.96.1.66:3001/app/uploads/2022/03/NFT-yearly-report-2021-cumulative-profit-collectible-768x676.jpg 768w" sizes="(max-width: 811px) 100vw, 811px" /><figcaption> NonFungible.com yearly report 2021 &#8211; NFT Collectible Focus </figcaption></figure></div>



<p>For the focus on Crypto Video Games, we have taken into account two other blockchains in addition to Ethereum: Immutable X for the game Gods Unchained and Ronin for Axie Infinity.</p>



<p>Most video games have ported their on-chain activity to other blockchains or a Layer 2 Ethereum solution, so these figures are to be considered lower than the actual activity of the market.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="873" height="579" src="http://100.96.1.66:3001/app/uploads/2022/03/NFT-yearly-report-2021-activity-gaming.jpg" alt="NFT yearly report 2021 activity gaming" class="wp-image-17601" srcset="http://100.96.1.66:3001/app/uploads/2022/03/NFT-yearly-report-2021-activity-gaming.jpg 873w, http://100.96.1.66:3001/app/uploads/2022/03/NFT-yearly-report-2021-activity-gaming-300x199.jpg 300w, http://100.96.1.66:3001/app/uploads/2022/03/NFT-yearly-report-2021-activity-gaming-768x509.jpg 768w" sizes="(max-width: 873px) 100vw, 873px" /><figcaption>NonFungible.com yearly report 2021 &#8211; NFT Video Games Focus</figcaption></figure></div>



<p>You will find in the report even more indicators for metaverse or decentralized finance.</p>



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<p class="has-text-align-center has-medium-font-size"><strong>Thank you to all of our 2021 sponsors who made this report possible</strong></p>



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<p class="has-text-align-center has-medium-font-size"><strong>And a special thank you to our official partner</strong><a href="https://www.animocabrands.com/?utm_source=nonfungible"></a><a href="https://decentraland.org/?utm_source=nonfungible"></a></p>



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<p>You will find exclusive interviews with different actors from the ecosystem, ranging from the founders of Axie Infinity to Crypto Artists such as Pascal Boyart as well as collectors recognized by the whole community like WhaleShark.</p>



<p>In addition this year other institutional actors have also agreed to participate in the writing of this report such as Fanny Lakoubay, Crypo-Art consultant, Shari Glazer, entrepreneur and philanthropist or Michael Bouhanna, Co-Head of Digital Art Sales at Sotheby&#8217;s.</p>



<p>Several topics will be discussed such as:</p>



<ul><li>NFTs gradually creating new jobs</li><li>How early adopters and investors currently perceive the current state of the NFT industry</li><li>How Play to Earn enabled to Pro Blockchain Gaming to develop</li><li>Who are the people behind the creation of metaverses: from 3D designers to Metaverse founders &amp; real estate developers</li></ul>



<p>We hope you’ll enjoy this report as much as we appreciated to do it!</p>



<div class="wp-block-image yearly-report-banner"><figure class="aligncenter size-large is-resized"><a href="https://nonfungible.com/reports/2021/en/yearly-nft-market-report" target="_blank" rel="noopener"><img loading="lazy" src="http://100.96.1.66:3001/app/uploads/2022/08/Nonfungible_Yearly-NFT-Report-2021-1x19-1-1024x1024.png" alt="Read the largest and most-in-depth NFT market research ever published. Get your Yearly NFT Market Report!" class="wp-image-66400" width="512" height="512" srcset="http://100.96.1.66:3001/app/uploads/2022/08/Nonfungible_Yearly-NFT-Report-2021-1x19-1-1024x1024.png 1024w, http://100.96.1.66:3001/app/uploads/2022/08/Nonfungible_Yearly-NFT-Report-2021-1x19-1-300x300.png 300w, http://100.96.1.66:3001/app/uploads/2022/08/Nonfungible_Yearly-NFT-Report-2021-1x19-1-150x150.png 150w, http://100.96.1.66:3001/app/uploads/2022/08/Nonfungible_Yearly-NFT-Report-2021-1x19-1-768x768.png 768w, http://100.96.1.66:3001/app/uploads/2022/08/Nonfungible_Yearly-NFT-Report-2021-1x19-1-1536x1536.png 1536w, http://100.96.1.66:3001/app/uploads/2022/08/Nonfungible_Yearly-NFT-Report-2021-1x19-1.png 1650w" sizes="(max-width: 512px) 100vw, 512px" /></a></figure></div>



<p>Don’t forget to follow us on our different social networks!</p>



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You were waiting for it, we did it. Here is our 2021 annual report on NFTs with everything you need to know about NFTs in 2021!

Our 2021 NFT Yearly Report is out!


<p><a href="https://www.themekaverse.com/" target="_blank" rel="noreferrer noopener">MekaVerse</a> is a Profile Picture (<strong>PFP) collection of 8888 Mekas</strong> influenced by Japanese anime/manga masterpieces such as Gundam, Evangelion and even Code Geass. There was a lot of excitement before the launch of the project. With over 200,000 followers on Twitter and they hit the 250k limit on Discord (without “additional authorizations” from the Discord team). </p>



<h2><strong>Back to numbers on the launch of MekaVerse</strong></h2>



<p>By Thursday, October 7, <strong>172,876 wallets</strong> had been used to enter the raffle. Of those 172,876 wallets, 56,945 had chosen one Meka and 115,931 had chosen two Mekas.&nbsp; The MekaVerse team revealed some statistics about this extraordinary drop:</p>



<blockquote class="wp-block-quote"><p><em>We had 4,635,249 views and 661,737 unique users on our website. In addition, we had 130,000 visits within minutes of launch.</em></p></blockquote>



<p>In the end, 8,593 Mekas were sold at launch at a price of 0.2 Ether (ETH) each, earning the team more than <strong>1,718 ETH, or nearly $6.3 million.</strong></p>



<p>The sales were followed by a 5-day period where holders had to wait to see what their Mekas would look like. During this period, the price floor had its ATH with a value of about 8 ETH. The reveal took place on Tuesday 12 October after being postponed for 24 hours due to some technical problems with the size of the 3D images.</p>



<p>Since the drop, <strong>MekaVerse has generated in 10 days about 39,000 Ether (ETH)</strong> on the secondary market.&nbsp; Interestingly that the record sale is held by the Meka #8597 acquired for 125 ETH or about $476 600 US dollars.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1280" height="1024" src="http://100.96.1.66:3001/app/uploads/2021/10/mekaverse-weekly-USD-sales.jpg" alt="mekaverse weekly USD sales" class="wp-image-9235" srcset="http://100.96.1.66:3001/app/uploads/2021/10/mekaverse-weekly-USD-sales.jpg 1280w, http://100.96.1.66:3001/app/uploads/2021/10/mekaverse-weekly-USD-sales-300x240.jpg 300w, http://100.96.1.66:3001/app/uploads/2021/10/mekaverse-weekly-USD-sales-1024x819.jpg 1024w, http://100.96.1.66:3001/app/uploads/2021/10/mekaverse-weekly-USD-sales-768x614.jpg 768w" sizes="(max-width: 1280px) 100vw, 1280px" /><figcaption><em>NonFungible.com Weekly Statistic &#8211; <strong>Top 5 USD Sales &#8211; Week 41</strong></em></figcaption></figure></div>



<h2><strong>Back to the controversies&nbsp;</strong></h2>



<p>From a numerical point of view, the drop was colossal even taking into account the presence of bots. The hype around the project attracted a lot of people and even the <strong>slightest mistake from the team was scrutinized and analyzed.</strong></p>



<p>A number of allegations have appeared on Twitter, including suggestions that one of the developers, Wyb0 of Miinded Studio (MekaVerse&#8217;s technical provider) managed to purchase one of the rarest NFTs (#6764) through early <a href="https://twitter.com/0xMOLOTOV/status/1448310259249000448" target="_blank" rel="noreferrer noopener">access to metadata</a>.</p>



<p>The person concerned responded to the accusations via a thread. It is difficult to unravel the truth, however, would Wyb0 have been naive enough to use his public address to commit the crime? You can find all <a href="https://twitter.com/_Wyb0/status/1448719107080310787" target="_blank" rel="noreferrer noopener">his explanations here</a>. Moreover, the Meka in question isn’t as rare as has been speculated. Indeed, <strong>Meka #6764 is ranked 1395, not 16.</strong></p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1190" height="594" src="http://100.96.1.66:3001/app/uploads/2021/10/mekaverse-tweet-wyb0.jpg" alt="mekaverse tweet wyb0" class="wp-image-9234" srcset="http://100.96.1.66:3001/app/uploads/2021/10/mekaverse-tweet-wyb0.jpg 1190w, http://100.96.1.66:3001/app/uploads/2021/10/mekaverse-tweet-wyb0-300x150.jpg 300w, http://100.96.1.66:3001/app/uploads/2021/10/mekaverse-tweet-wyb0-1024x511.jpg 1024w, http://100.96.1.66:3001/app/uploads/2021/10/mekaverse-tweet-wyb0-768x383.jpg 768w" sizes="(max-width: 1190px) 100vw, 1190px" /></figure></div>



<p>In any case, due to this controversy, <strong>the profits from the NFT in question will be donated to charity</strong>.</p>



<p>Other influencers such as <a href="https://twitter.com/beaniemaxi" target="_blank" rel="noreferrer noopener">Beanie</a> seemed to have a negative prejudice towards the project. Accusations that sometimes seem unfair when you compare the launch of MekaVerse to other NFT projects and the technical difficulties of launching with so much interest. Ecko, full-stack developer at Miinded, said:</p>



<blockquote class="wp-block-quote"><p><em>We worked really hard on this project because we only had three weeks to complete everything, and you can’t imagine the strain of having 230,000 people (at the absolute least) watching and evaluating you. We are and will always be humans, with all our qualities and faults. We made a few minor errors, but nothing major</em></p><cite>Ecko &#8211; Full stack developer at Miinded</cite></blockquote>



<p>Unfortunately, the vast majority of projects have difficulty curbing <strong>opportunism and bot involvement at launch</strong>. Currently, how many projects can claim a 100% smooth drop, without gas war and without bots?</p>



<h2>A missed launch?</h2>



<p>The launch of MekaVerse was not perfect, but it is worth mentioning good initiatives during the registration for the raffle: Google ReCaptcha V3, Wallet funds verification, Discord or Twitter authentication, EIP 712 V3 signature. You can find details of the drop from <a href="https://medium.com/@Miinded/behind-the-scene-of-mekaverse-launch-e6343e2acc6f" target="_blank" rel="noreferrer noopener">the point of view of Miinded here</a>.  </p>



<p>No matter what we think of the project, <strong>MekaVerse was one of the biggest launches in the history of NFTs</strong> in terms of hype and volume. A success that was both a blessing and a curse for the creators who found themselves under both praise and criticism..</p>


The MekaVerse project broke all records since its launch. What are the figures of this unusual start? We will also see that this titanic drop has also generated several controversies, but are they really justified?


Mekaverse Launch: Let’s take a step back with data!


<p>When at the end of 2020 we did an <a href="https://nonfungible.com/blog/the-cryptopunks-evolution" target="_blank" rel="noreferrer noopener">analysis on the history of Cryptopunks</a>, the uptrend of this project was already clear, little did we know how big the Punks would grow in the real world over such a short time!</p>



<p>With famous auctions, the media attention, <strong>sales record upon sales record</strong>, VC speculation and the celebrities who own them&#8230; today <strong>CryptoPunks has become</strong> <strong>an essential part of the NFT culture</strong>.</p>



<p>But beyond the positive news, how is it behind the scenes&#8230;did everyone manage to make profitable sales and how is the supply distributed among holders?</p>



<h2>Number of CryptoPunks in circulation</h2>


<div class="wp-block-image">
<figure class="aligncenter size-full"><img loading="lazy" width="1280" height="720" src="http://100.96.1.66:3001/app/uploads/2021/09/01-Cryptopunks-total-supply-circulation.jpg" alt="Cryptopunks total supply circulation" class="wp-image-7098" srcset="http://100.96.1.66:3001/app/uploads/2021/09/01-Cryptopunks-total-supply-circulation.jpg 1280w, http://100.96.1.66:3001/app/uploads/2021/09/01-Cryptopunks-total-supply-circulation-300x169.jpg 300w, http://100.96.1.66:3001/app/uploads/2021/09/01-Cryptopunks-total-supply-circulation-1024x576.jpg 1024w, http://100.96.1.66:3001/app/uploads/2021/09/01-Cryptopunks-total-supply-circulation-768x432.jpg 768w" sizes="(max-width: 1280px) 100vw, 1280px" /><figcaption> <em> Total supply of CryptoPunks in circulation</em></figcaption></figure></div>


<p>One of the first indicators to look at is the <strong>number of CryptoPunks in circulation</strong>. As a reminder, the initial distribution of the 10,000 punks took place in 2017 through an airdrop where all it took was to claim some to own some.</p>



<p>For many years, CryptoPunks held a relatively niche interest. Some collectors bought them for <strong>the symbol they represented</strong> but it was not very easy to obtain or resell them. Indeed, because of the use of the ERC-20 standard, the only way to exchange them was through the <strong>official Larvalabs marketplace</strong>.</p>



<figure class="wp-block-image size-full"><img loading="lazy" width="1280" height="720" src="http://100.96.1.66:3001/app/uploads/2021/09/03-Cryptopunks-supply-through-time.jpg" alt="Cryptopunks supply through time" class="wp-image-7100" srcset="http://100.96.1.66:3001/app/uploads/2021/09/03-Cryptopunks-supply-through-time.jpg 1280w, http://100.96.1.66:3001/app/uploads/2021/09/03-Cryptopunks-supply-through-time-300x169.jpg 300w, http://100.96.1.66:3001/app/uploads/2021/09/03-Cryptopunks-supply-through-time-1024x576.jpg 1024w, http://100.96.1.66:3001/app/uploads/2021/09/03-Cryptopunks-supply-through-time-768x432.jpg 768w" sizes="(max-width: 1280px) 100vw, 1280px" /><figcaption><em> Supply of CryptoPunks in circulation through time </em></figcaption></figure>



<p>When in 2020 it became possible to transform them into an exchangeable form (using the &#8220;Wrap&#8221;) on marketplaces like Opensea, interest really started to grow at that time.</p>



<p>With this <strong>new possibility for NFT collectors</strong>, this made exchanges easier from March 2020 followed by a new wave of purchases in May 2020. But the biggest volumes were yet to come&#8230;</p>



<h2>Waves of massive CryptoPunks purchases</h2>


<div class="wp-block-image">
<figure class="aligncenter size-large"><img loading="lazy" width="1024" height="576" src="http://100.96.1.66:3001/app/uploads/2021/09/02-Cryptopunks-bought-through-time-1-1024x576.jpg" alt="Cryptopunks bought through time" class="wp-image-18294" srcset="http://100.96.1.66:3001/app/uploads/2021/09/02-Cryptopunks-bought-through-time-1-1024x576.jpg 1024w, http://100.96.1.66:3001/app/uploads/2021/09/02-Cryptopunks-bought-through-time-1-300x169.jpg 300w, http://100.96.1.66:3001/app/uploads/2021/09/02-Cryptopunks-bought-through-time-1-768x432.jpg 768w, http://100.96.1.66:3001/app/uploads/2021/09/02-Cryptopunks-bought-through-time-1.jpg 1280w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption><em>Number of CryptoPunks bought through time</em></figcaption></figure></div>


<p>Then came the <strong>DeFi Summer</strong> <strong>of 2020</strong> and its insane fees, blocking a large part of NFT sales in the process, but this temporary slowdown was only to start in full force again by September.</p>



<p>For no desirable reason, <strong>a wave of purchases took place during September</strong> <strong>2020</strong>, which then fell sharply again at the end of the year. It was over this lull that we wrote an analysis on the evolution of CryptoPunks over time.</p>


<div class="wp-block-image">
<figure class="aligncenter size-large"><img loading="lazy" width="1024" height="576" src="http://100.96.1.66:3001/app/uploads/2021/09/07-Cryptopunks-average-price-1-1024x576.jpg" alt="Cryptopunks average price" class="wp-image-18292" srcset="http://100.96.1.66:3001/app/uploads/2021/09/07-Cryptopunks-average-price-1-1024x576.jpg 1024w, http://100.96.1.66:3001/app/uploads/2021/09/07-Cryptopunks-average-price-1-300x169.jpg 300w, http://100.96.1.66:3001/app/uploads/2021/09/07-Cryptopunks-average-price-1-768x432.jpg 768w, http://100.96.1.66:3001/app/uploads/2021/09/07-Cryptopunks-average-price-1.jpg 1280w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption><em>CryptoPunks average USD price through time</em></figcaption></figure></div>


<p>But this was to be only the first wave of truly massive buying. In February 2021, likely prompted by <strong>the announcement of Beeple&#8217;s NFT auction at Christie&#8217;s, </strong>a new record buying peak stood at 2,089 purchases for that<strong> </strong>month.</p>



<p>It was also in February that the average price of CryptoPunks began to really take off. Driven by the bull run of Ethereum with prices calculated on an ETH basis by purists, it became difficult for small buyers to be able to afford one..</p>



<p>One issue that quickly came to mind was that of decentralization. Indeed, are the addresses that bought all these Punks the same or was this truely a real craze on the part of the public?</p>



<h2>A Toxic Centralization?</h2>


<div class="wp-block-image">
<figure class="aligncenter size-large"><img loading="lazy" width="1024" height="576" src="http://100.96.1.66:3001/app/uploads/2021/09/04-Cryptopunks-supply-owned-1-1024x576.jpg" alt="Cryptopunks supply owned" class="wp-image-18290" srcset="http://100.96.1.66:3001/app/uploads/2021/09/04-Cryptopunks-supply-owned-1-1024x576.jpg 1024w, http://100.96.1.66:3001/app/uploads/2021/09/04-Cryptopunks-supply-owned-1-300x169.jpg 300w, http://100.96.1.66:3001/app/uploads/2021/09/04-Cryptopunks-supply-owned-1-768x432.jpg 768w, http://100.96.1.66:3001/app/uploads/2021/09/04-Cryptopunks-supply-owned-1.jpg 1280w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption><em>Percentage of CryptoPunks available supply Owned</em></figcaption></figure></div>


<p>Keeping in mind that <strong>36.34% of CryptoPunks have never moved from their initial wallets</strong>, let&#8217;s look at the supply breakdown today.</p>



<p>The first data that first jumps out here is the <strong>100 largest holders are holding 71.88% of the supply in circulation!</strong></p>



<p>The top 10, on the other hand, &#8220;only&#8221; hold 27.08% of the supply. These figures indicate a <strong>very strong dominance</strong> <strong>by a small number of players, which raises some questions about potential market control.</strong></p>


<div class="wp-block-image">
<figure class="aligncenter size-full"><img loading="lazy" width="1280" height="720" src="http://100.96.1.66:3001/app/uploads/2021/09/05-Cryptopunks-top-10-traders.jpg" alt="Cryptopunks top 10 traders" class="wp-image-7102" srcset="http://100.96.1.66:3001/app/uploads/2021/09/05-Cryptopunks-top-10-traders.jpg 1280w, http://100.96.1.66:3001/app/uploads/2021/09/05-Cryptopunks-top-10-traders-300x169.jpg 300w, http://100.96.1.66:3001/app/uploads/2021/09/05-Cryptopunks-top-10-traders-1024x576.jpg 1024w, http://100.96.1.66:3001/app/uploads/2021/09/05-Cryptopunks-top-10-traders-768x432.jpg 768w" sizes="(max-width: 1280px) 100vw, 1280px" /><figcaption><em>Top 10 CryptoPunks most profitable traders</em></figcaption></figure></div>


<p>While knowing that the average price of CryptoPunks <strong>soared</strong> from July 2021, the top 10 flippers became millionaires <strong>in just a few months</strong>.</p>



<p> Thanks to a knowledge of traits that are rarer than others, the acquisition of the rarest Punks has pushed the average price up, resulting in a <strong>strong hype.</strong></p>



<p>But not all punks’ values are the same. Some investors, convinced that the price of CryptoPunks will <strong>only go up</strong>, have not hesitated to spend millions of dollars to get one.</p>


<div class="wp-block-image">
<figure class="aligncenter size-full"><img loading="lazy" width="1280" height="720" src="http://100.96.1.66:3001/app/uploads/2021/09/06-Cryptopunks-top-10-investors.jpg" alt="Cryptopunks top 10 investors" class="wp-image-7103" srcset="http://100.96.1.66:3001/app/uploads/2021/09/06-Cryptopunks-top-10-investors.jpg 1280w, http://100.96.1.66:3001/app/uploads/2021/09/06-Cryptopunks-top-10-investors-300x169.jpg 300w, http://100.96.1.66:3001/app/uploads/2021/09/06-Cryptopunks-top-10-investors-1024x576.jpg 1024w, http://100.96.1.66:3001/app/uploads/2021/09/06-Cryptopunks-top-10-investors-768x432.jpg 768w" sizes="(max-width: 1280px) 100vw, 1280px" /><figcaption><em>Top 10 CryptoPunks investors</em></figcaption></figure></div>


<h2>The CryptoPunks aren&#8217;t the same</h2>



<p><strong>The CryptoPunks market is therefore becoming</strong> <strong>more and more centralized </strong>but above all, completely inaccessible to ordinary mortals. </p>



<p>With the arrival of different investment groups like Three Arrow Capital that are only looking for the &#8220;most valuable&#8221; NFTs, it seems that competition for the acquisition of CryptoPunks is taking hold.</p>



<p>Between what seems to have become two opposing camps, the few buyers who were able to get their Punks a long time ago because they appreciated the design are now only a handful.</p>



<p><strong>Probably not, but the spirit of donation and experience that reigned at the beginning, it is indeed dead.</strong></p>


Cryptopunks have been much talked about over the past year, both for their cultural aspect and their soaring price. Let's take a closer look at the data!

Will centralization kill the CryptoPunks ?


<p>Although the NFT adventure on Ethereum officially began in 2017 with Cryptopunks, the first &#8220;early adopters&#8221; of blockchain gaming and CryptoKitties appeared after the crash of the crypto market in early 2018.</p>



<p>At that time, the atmosphere was quite gloomy in the crypto space but it was also the moment when we could see <strong>the creation of a first generation of proactive users</strong> in the development of the projects that interested them.</p>



<p>After a rather <strong>intense FUD phase a few weeks ago</strong>, last week we published a global analysis to respond to this and tried to sooth the spirits at the same time. Today we looked at other key indicators to better understand the current state of the market:</p>



<ul><li>The evolution of the number of active wallets from September 2020 to June 2021.</li><li>Sales volume (number, total USD volume, and average sales price).</li><li>Number of buyers and sellers.</li><li>Sales price range.</li></ul>



<p>The results are more mixed than a simple &#8220;<strong>NFTs are dead</strong>&#8221; or &#8220;<strong>everyone uses them</strong>&#8220;, let&#8217;s look at the numbers in more detail and try to interpret them in the most objective way possible.</p>



<p><strong>So what has the impact been of this &#8220;NFT Boom&#8221; on the ecosystem?</strong> Did people who were attracted by the hype stay or leave as quickly as they came? Does the Post-Boom look like the pre-Boom?</p>



<h2><strong>Evolution of active wallets</strong></h2>



<p>To determine the evolution of active wallets over time, we looked at whether they had completed at least one NFT transaction over several periods of time:</p>



<ul><li>Before: from September to December 2020</li><li>Pre-Boom: January to February 2021</li><li>Boom: March to April 2021</li><li>Post-Boom: from May to the first week of June 2021</li></ul>



<p><strong>[DISCLAIMER]</strong> The chart below shows the wallets that have been active ONLY over the period indicated. The total volume of active wallets in each of the periods is higher.</p>



<p><strong>The objective here is to realize the rate of people who were interested in NFTs at some point but did not continue to be active afterwards.</strong></p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1280" height="720" src="http://100.96.1.66:3001/app/uploads/2021/06/NFT-market-post-boom-active-wallets.jpg" alt="NFT market post boom active wallets" class="wp-image-4915" srcset="http://100.96.1.66:3001/app/uploads/2021/06/NFT-market-post-boom-active-wallets.jpg 1280w, http://100.96.1.66:3001/app/uploads/2021/06/NFT-market-post-boom-active-wallets-300x169.jpg 300w, http://100.96.1.66:3001/app/uploads/2021/06/NFT-market-post-boom-active-wallets-1024x576.jpg 1024w, http://100.96.1.66:3001/app/uploads/2021/06/NFT-market-post-boom-active-wallets-768x432.jpg 768w" sizes="(max-width: 1280px) 100vw, 1280px" /></figure></div>



<h3><strong>Before the Boom</strong></h3>



<p>While 27,236 addresses were active during the period September to December 2020, <strong>16,373 (-39.8%) addresses that were not active before this appeared for the period of January / February 2021.</strong></p>



<h3><strong>The Boom&nbsp;</strong></h3>



<p><strong>The Boom has seen more than 60,000 new wallets interact with NFTs.</strong> This is a lot in proportion to the size of the NFT ecosystem, but relatively little when you think of all the hype that has occurred around the world.</p>



<p>Note that these 60,417 wallets arrived during the peak of media coverage have not (for the moment) followed up or interacted with an NFT since.</p>



<h3><strong>After the Boom</strong></h3>



<p>Where some claim that the &#8220;Boom&#8221; is over, and that the market has collapsed, we observe here that during this period May / June, <strong>more than 45,000 new wallets interacted for the first time with the NFTs.</strong> This score is much higher than the Pre-Boom periods.</p>



<p>So far, these figures point to the evidence that there has been a very sharp increase in the number of new addresses active in the NFT ecosystem. This is due in part to the record sale of Beeple as well as the global media coverage of NFTs, bringing a wave of new users into the ecosystem.</p>



<p><strong>Remember that studied here are only the new addresses active on only one of the periods analyzed (Before / Pre-Boom / Boom / Post Boom).</strong></p>



<h2><strong>Only passing through?</strong></h2>



<p>The question then arises whether it was just fashionable to participate or whether the users who arrived during or shortly before the Boom stayed on afterwards. <strong>In other words: what is the retention rate of the NFT ecosystem regarding these new users?</strong></p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1280" height="720" src="http://100.96.1.66:3001/app/uploads/2021/06/NFT-market-post-boom-between-period.jpg" alt="NFT market post boom between period" class="wp-image-4916" srcset="http://100.96.1.66:3001/app/uploads/2021/06/NFT-market-post-boom-between-period.jpg 1280w, http://100.96.1.66:3001/app/uploads/2021/06/NFT-market-post-boom-between-period-300x169.jpg 300w, http://100.96.1.66:3001/app/uploads/2021/06/NFT-market-post-boom-between-period-1024x576.jpg 1024w, http://100.96.1.66:3001/app/uploads/2021/06/NFT-market-post-boom-between-period-768x432.jpg 768w" sizes="(max-width: 1280px) 100vw, 1280px" /></figure></div>



<p>While the active wallets between the &#8220;before&#8221; period (from September to December 2020) and &#8220;Pre-Boom&#8221; (January to February 2021) numbered 3,107, <strong>there were 6,418 active over the two consecutive periods &#8220;Pre-Boom&#8221; and &#8220;Boom&#8221;</strong> (March to April 2021) an increase of 106.5%.</p>



<p>This indicates a good proportion of new users who became interested in NFTs at the very beginning of the 2021 hype then remained active over the following months.</p>



<p>In contrast to the previous downward trend, <strong>the number of active wallets over the&nbsp; &#8220;Boom&#8221; period to &#8220;Post-Boom&#8221; saw an increase of 133.7%!</strong></p>



<p>If we compare this trend to the 60,000 new wallets active only during the Boom, here we have nearly <strong>15,000 wallets arriving during the Boom phase that continued to be active over the following months.</strong></p>



<p>Taking into account these two populations (60k + 15k) we arrive at a total of 75,000 new wallets that arrived during the Boom, of which 25% then remained active afterwards.</p>



<p><strong>We can conclude here that the ecosystem has presented a retention rate of 25% new users.</strong></p>



<h2><strong>Distribution of NFT sales</strong></h2>



<p>Another important indicator is that of the distribution of NFTs sales. <strong>In concrete terms, the question is how have price trends been impacted by the Boom?</strong></p>



<p>We have defined price ranges between $0.1 and $10 up to an interval between $500,000 and $1,000,000.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1280" height="720" src="http://100.96.1.66:3001/app/uploads/2021/06/NFT-market-post-boom-distribution.jpg" alt="NFT market post boom distribution" class="wp-image-4917" srcset="http://100.96.1.66:3001/app/uploads/2021/06/NFT-market-post-boom-distribution.jpg 1280w, http://100.96.1.66:3001/app/uploads/2021/06/NFT-market-post-boom-distribution-300x169.jpg 300w, http://100.96.1.66:3001/app/uploads/2021/06/NFT-market-post-boom-distribution-1024x576.jpg 1024w, http://100.96.1.66:3001/app/uploads/2021/06/NFT-market-post-boom-distribution-768x432.jpg 768w" sizes="(max-width: 1280px) 100vw, 1280px" /></figure></div>



<p>On this graph, one element is particularly important to remember: at the end of 2020, <strong>99% of NFTs sold were sold for less than $5,000.</strong> It is since the start of 2021 that assets that sold for more than $5,000 have gradually taken their place at the expense of NFTs sold at less than $10.</p>



<p>This could have been explained by particularly <strong>high transaction fees</strong> (buyers not wanting NFTs worth less than the price of the transaction) except that in recent weeks, the price of gas has dropped dramatically and <strong>the proportion of the cheapest NFTs have not risen.</strong></p>



<p>The NFT market landscape has not changed dramatically between September 2020 and June 2021, but it shows <strong>a very strong inflection</strong> that leaves more room for more expensive assets ($&gt; $5,000) which account for almost 10% of the market.</p>



<p>At the same time, the intermediate segment (between $100 and $5,000) has also grown a lot. The big loser in this new landscape is undoubtedly the segment of <strong>the cheapest assets (&lt;$100) which represented up to 85% of the entire market and declined to represent only 50% of sales.</strong></p>



<h2><strong>The NFT ecosystem is growing faster</strong></h2>



<p>We are still only in the middle of the year but what has attracted our attention the most in this analysis is undeniably <strong>the number of wallets which have remained active after the initial hype</strong> that we experienced for a few weeks.</p>



<p>The USD indicator is certainly always interesting to observe but <strong>looking more deeply at the number of active wallets and especially new wallets</strong> gives much more precise indications on the state of the NFT market.</p>



<p>Despite <strong>a difficult context</strong> for all these newcomers to understand, the sector has nothing to do with previous years and has become <strong>much more accessible thanks to the efforts of the entire ecosystem!</strong></p>



<p>These efforts seem to be rewarded today by <strong>a growing number of NFT users</strong>&nbsp; and <strong>the least we can do today is to welcome them on this adventure</strong> which, in our opinion, is still in its infancy.</p>



<p>&nbsp;The few conclusions to be drawn from these Post-Boom analyses are therefore:</p>



<ul><li>The NFT ecosystem has a very good retention rate of new users (25%)</li><li>After the Boom and hype, the ecosystem has seen nearly 40,000 new users arrive every 2 months.</li><li>The average price of assets in the market has increased significantly, giving rise to a segment of &#8220;very expensive&#8221; assets that only an elite can acquire.</li></ul>



<p>There is undoubtedly a before and and after the Boom. <strong>The ecosystem is growing faster, appealing to more and more new users, who have already begun to shape this new era of the NFT ecosystem.</strong></p>


It has now been 6 months since the NFT market saw its indicators strongly shaken up, with additional over hype a month ago. Let's take a look at the current state of the market and see what surprises it holds.

What does the NFT Ecosystem look like after the Boom?


<p>If that was the case the NFT market would be in the middle of a crash, the bubble would have finally exploded leaving behind thousands of ruined users. As proof of the true reality the below figures speak for themselves!</p>



<p>Finally, more specifically,<a href="https://protos.com/nft-market-bubble-popped-crypto-collectibles-are-over/" target="_blank" rel="noreferrer noopener"> some articles</a> interpret the figures to their own preference..or at least hope to match the popular belief that everything associated with cryptos is a speculative bubble with no future.</p>



<p>When we<a href="https://nonfungible.com/blog/sorry-no-nft-market-crash" target="_blank" rel="noreferrer noopener"> published</a> an article two months ago saying that there was no NFT market crash, the point was not to challenge and say &#8220;so when is it going to happen?&#8221;. There is no doubt that with the hype that the ecosystem experienced in recent months,<strong> the euphoria was going to fade eventually.</strong></p>



<p>While waiting for our 2nd Quarterly report, let&#8217;s rise above the noise and look at the overall market trends (beyond the last 2 weeks)</p>



<p><strong>DISCLAIMER:</strong></p>



<ul><li><strong>1- to be reactive in the information we produce, the data was extracted on 06.03.2021. The market data for the week from 05.31 to 06.06 represents only half a week!</strong></li><li><strong>2 &#8211; this data relates only to NFT activity on L1 Ethereum</strong></li><li><strong>3 &#8211; for each graph, the linear trend was calculated automatically to give an idea of the average trend for each metric. None of them are bearish over the analysis period.</strong></li></ul>



<h2><strong>NFT USD weekly averages</strong></h2>



<p>To begin this analysis, let&#8217;s first look at some weekly statistics on USD volumes.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1280" height="720" src="http://100.96.1.66:3001/app/uploads/2021/06/buuble-market-crash-NFT-total-sales.jpg" alt="bubble market crash NFT total sales USD" class="wp-image-4869" srcset="http://100.96.1.66:3001/app/uploads/2021/06/buuble-market-crash-NFT-total-sales.jpg 1280w, http://100.96.1.66:3001/app/uploads/2021/06/buuble-market-crash-NFT-total-sales-300x169.jpg 300w, http://100.96.1.66:3001/app/uploads/2021/06/buuble-market-crash-NFT-total-sales-1024x576.jpg 1024w, http://100.96.1.66:3001/app/uploads/2021/06/buuble-market-crash-NFT-total-sales-768x432.jpg 768w" sizes="(max-width: 1280px) 100vw, 1280px" /><figcaption><em>NonFungible.com &#8211; Average USD volume</em></figcaption></figure></div>



<p>Although the end of 2020 was already marked by an increase in USD volume (as we indicated in our<a href="https://nonfungible.com/reports/2020/en/yearly-nft-market-report"> 2020 annual report</a>) it has been 6 months since this time and <strong>the overall trend is not weakening</strong>.</p>



<p>As of 12/28/2020, NFT&#8217;s total weekly sales volume on the Ethereum blockchain was $1,180,502. As of 31/05/2021, counting only three days of the week, this volume was at 70,623,544 dollars.</p>



<p>The reason for the high in May is evidence of over-speculation. A market that goes from $78M to more than $270M in a week is necessarily brought back down. In this case, the descent resulted in a stabilization at a higher level than before at around $90M/week (i.e. 81x the volume in early January).</p>



<p><strong>The descent from a peak does not necessarily mean the explosion of a bubble.</strong></p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1280" height="720" src="http://100.96.1.66:3001/app/uploads/2021/06/buuble-market-crash-NFT-weekly-buyer.jpg" alt="bubble market crash NFT weekly buyer" class="wp-image-4868" srcset="http://100.96.1.66:3001/app/uploads/2021/06/buuble-market-crash-NFT-weekly-buyer.jpg 1280w, http://100.96.1.66:3001/app/uploads/2021/06/buuble-market-crash-NFT-weekly-buyer-300x169.jpg 300w, http://100.96.1.66:3001/app/uploads/2021/06/buuble-market-crash-NFT-weekly-buyer-1024x576.jpg 1024w, http://100.96.1.66:3001/app/uploads/2021/06/buuble-market-crash-NFT-weekly-buyer-768x432.jpg 768w" sizes="(max-width: 1280px) 100vw, 1280px" /><figcaption><em>NonFungible.com &#8211; Weekly buyers and sellers</em></figcaption></figure></div>



<p>Regarding the decrease in users, here too we must not be mistaken: there were 2390 weekly buyers on 28/12/2020 against 7371 on the first three days of the week of 31/05/2021. <strong>This is almost triple since the start of the year!</strong></p>



<p>Another encouraging sign is that the number of buyers is still consistently higher than the number of sellers. <strong>This is a crucial indicator to monitor to identify the health of a market.</strong></p>



<p>Similarly on the seller side, the number increased gradually in the first half of 2021 from an average of 1,500 weekly sellers to just over 6,000. The lowest low was reached in mid-May with 4,947 sellers, more than 3x than the number of sellers in January.</p>



<p><strong>The only major decline that can be highlighted on the graph above, is ONLY related to the incomplete data of the last week (Monday to Wednesday).</strong></p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1280" height="720" src="http://100.96.1.66:3001/app/uploads/2021/06/buuble-market-crash-NFT-sales.jpg" alt="bubble market crash NFT sales" class="wp-image-4867" srcset="http://100.96.1.66:3001/app/uploads/2021/06/buuble-market-crash-NFT-sales.jpg 1280w, http://100.96.1.66:3001/app/uploads/2021/06/buuble-market-crash-NFT-sales-300x169.jpg 300w, http://100.96.1.66:3001/app/uploads/2021/06/buuble-market-crash-NFT-sales-1024x576.jpg 1024w, http://100.96.1.66:3001/app/uploads/2021/06/buuble-market-crash-NFT-sales-768x432.jpg 768w" sizes="(max-width: 1280px) 100vw, 1280px" /><figcaption><em>NonFungible.com &#8211; Number of sales</em></figcaption></figure></div>



<p>In terms of the number of weekly asset sales, the trend follows the same path: 7134 sales at the beginning of the year, and 24916 at the end of May 2021. <strong>Here we see almost triple the sales from the start of the year.</strong></p>



<p>By making a quick average between the number of sales and the number of buyers, we went from 2.9 NFTs purchased per week/per buyer, to 3.3.</p>



<p><strong>It&#8217;s hard to contradict the fact that there are more dollars traded, more buyers, more sellers, and each buyer buys more NFTs.</strong></p>



<h2><strong>Focus on some projects</strong></h2>



<p>To go into a little more detail, let&#8217;s take a closer look at the average price of the assets that make up these NFT markets. Have traders fled the markets leaving assets without any value in a zombie market?</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1280" height="720" src="http://100.96.1.66:3001/app/uploads/2021/06/buuble-market-crash-NFT-most-traded.jpg" alt="bubble market crash NFT most traded" class="wp-image-4866" srcset="http://100.96.1.66:3001/app/uploads/2021/06/buuble-market-crash-NFT-most-traded.jpg 1280w, http://100.96.1.66:3001/app/uploads/2021/06/buuble-market-crash-NFT-most-traded-300x169.jpg 300w, http://100.96.1.66:3001/app/uploads/2021/06/buuble-market-crash-NFT-most-traded-1024x576.jpg 1024w, http://100.96.1.66:3001/app/uploads/2021/06/buuble-market-crash-NFT-most-traded-768x432.jpg 768w" sizes="(max-width: 1280px) 100vw, 1280px" /><figcaption><em>NonFungible.com &#8211; Average weekly price of most traded NFT</em></figcaption></figure></div>



<p><strong>It would seem not.</strong></p>



<p>The graph above shows the average asset price of 8 of the major NFT projects present on Ethereum:</p>



<ul><li><a href="https://sorare.com/" target="_blank" rel="noreferrer noopener">Sorare</a></li><li><a href="https://nonfungible.com/market-tracker/thesandbox" target="_blank" rel="noreferrer noopener">The Sandbox</a></li><li><a href="https://nonfungible.com/market-tracker/ethereumnameservice" target="_blank" rel="noreferrer noopener">Ethereum Name Service</a></li><li><a href="https://nonfungible.com/market-tracker/avastars" target="_blank" rel="noreferrer noopener">Avastars</a></li><li><a href="https://nonfungible.com/market-tracker/artblocks" target="_blank" rel="noreferrer noopener">Artblocks</a> </li><li><a href="https://nonfungible.com/market-tracker/makersplace" target="_blank" rel="noreferrer noopener">MakersPlace</a></li><li><a href="https://nonfungible.com/market-tracker/cryptokitties" target="_blank" rel="noreferrer noopener">CryptoKitties</a></li><li><a href="https://nonfungible.com/market-tracker/decentraland" target="_blank" rel="noreferrer noopener">Decentraland</a></li></ul>



<p>Overall, each of these types of assets has seen an increase in value over the past few months and even seem to have held up rather well in the face of the decline in cryptos over recent weeks.</p>



<p>Volatility remains high, but the trend is undoubtedly upwards, regardless of the price range and the typology of the project.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1280" height="720" src="http://100.96.1.66:3001/app/uploads/2021/06/buuble-market-crash-NFT-cryptopunks-superrare.jpg" alt="bubble market crash NFT cryptopunks superrare" class="wp-image-4865" srcset="http://100.96.1.66:3001/app/uploads/2021/06/buuble-market-crash-NFT-cryptopunks-superrare.jpg 1280w, http://100.96.1.66:3001/app/uploads/2021/06/buuble-market-crash-NFT-cryptopunks-superrare-300x169.jpg 300w, http://100.96.1.66:3001/app/uploads/2021/06/buuble-market-crash-NFT-cryptopunks-superrare-1024x576.jpg 1024w, http://100.96.1.66:3001/app/uploads/2021/06/buuble-market-crash-NFT-cryptopunks-superrare-768x432.jpg 768w" sizes="(max-width: 1280px) 100vw, 1280px" /><figcaption><em>NonFungible.com &#8211; Weekly average price of CryptoPunks and SuperRare</em></figcaption></figure></div>



<p>On the side of the &#8220;star&#8221; projects that marked the first half by their volume &amp; price to turn heads (<a href="https://superrare.co/" target="_blank" rel="noreferrer noopener">SuperRare</a> and <a href="https://larvalabs.com/cryptopunks" target="_blank" rel="noreferrer noopener">CryptoPunks</a>), <strong>the trend is also showing signs of stabilization.</strong> We are still a long way from the market collapse that some predict.</p>



<p>It should be noted, however, that <strong>the sudden craze for CryptoPunks has given way to a relatively large drop in the average value of these Collectibles</strong>, whose price seems to be stabilizing closer to $50,000 than to $100,000.</p>



<h2><strong>A little step back</strong></h2>



<p>Even if the NFT markets are always interesting to observe under a microscope, it’s sometimes necessary to take a step back to better understand the internal and external factors that can influence a market:</p>



<ul><li>Its history beyond the last 2 weeks</li><li>in the case of NFT markets, it is essential to analyze in parallel the value of the crypto-currency most used for the acquisition of these assets: Ether</li></ul>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="800" height="551" src="http://100.96.1.66:3001/app/uploads/2021/06/buuble-market-crash-NFT-ethereum.jpg" alt="bubble market crash NFT ethereum" class="wp-image-4864" srcset="http://100.96.1.66:3001/app/uploads/2021/06/buuble-market-crash-NFT-ethereum.jpg 800w, http://100.96.1.66:3001/app/uploads/2021/06/buuble-market-crash-NFT-ethereum-300x207.jpg 300w, http://100.96.1.66:3001/app/uploads/2021/06/buuble-market-crash-NFT-ethereum-768x529.jpg 768w" sizes="(max-width: 800px) 100vw, 800px" /><figcaption><em>Source : <a href="https://www.coingecko.com/en/coins/ethereum" target="_blank" rel="noreferrer noopener">coingecko.com</a></em></figcaption></figure></div>



<p>The rise in the value of Ether over the month of May mechanically led to an increase in the value of all NFTs purchased in Ether. At the same time, the decline observed at the end of May obviously impacted the total volume of USD traded on the NFT markets (see chart &#8220;Total Sales USD&#8221; above).</p>



<p>However, it is crucial to note that crypto trends have had little or no impact on other indicators of the NFT industry (number of buyers, sellers, even the average price of NFTs seems to make its living regardless of the value of Ether).</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1147" height="588" src="http://100.96.1.66:3001/app/uploads/2021/06/buuble-market-crash-tx-average-tx-fees.jpg" alt="bubble market crash tx average tx fees" class="wp-image-4863" srcset="http://100.96.1.66:3001/app/uploads/2021/06/buuble-market-crash-tx-average-tx-fees.jpg 1147w, http://100.96.1.66:3001/app/uploads/2021/06/buuble-market-crash-tx-average-tx-fees-300x154.jpg 300w, http://100.96.1.66:3001/app/uploads/2021/06/buuble-market-crash-tx-average-tx-fees-1024x525.jpg 1024w, http://100.96.1.66:3001/app/uploads/2021/06/buuble-market-crash-tx-average-tx-fees-768x394.jpg 768w" sizes="(max-width: 1147px) 100vw, 1147px" /><figcaption><em>Source : <a href="https://etherscan.io/charts" target="_blank" rel="noreferrer noopener">etherscan.io</a></em></figcaption></figure></div>



<p>Another interesting graph to compare is that of the number of daily transactions on the Ethereum network with that of the average price of a transaction.</p>



<p><strong>Despite the high cost of a transaction on the network since the beginning of the year, this has obviously not prevented players, collectors or other buyers from continuing to acquire NFTs!</strong></p>



<h2><strong>NFTs are here to stay</strong></h2>



<p>One detail that is important to note on the last chart is that of transaction fees on Ethereum. If there is one indicator that has dropped sharply it is this one, <strong>to the delight of all Ethereum users</strong> (and to the great displeasure of its competitors).</p>



<p><strong>So we are in a situation today where the only bubble that has exploded is of transaction fees. </strong>&nbsp;But let&#8217;s not sell the bear&#8217;s skin before we have skinned it: there are still many improvements to come on this blockchain that will allow us to welcome even more users.</p>



<p>Remember that the trends we have been able to analyze here are found over an extremely short space of time (just a few months). <strong>The market trends observed in the first half of 2021 are only a reflection of the general runaway around cryptos and the NFT industry.</strong></p>



<p>While all of these signals are extremely encouraging at the moment, we must not lose sight of the overall trajectory of the NFT industry, from its beginnings at the end of 2017 to today.</p>



<p><strong>Indeed: even if increasingly people want to bury it, the NFT ecosystem is more alive than ever and seems determined to continue its journey for the foreseeable future!</strong></p>


Is the NFT space a bubble? Are NFTs the most Environmentally destructive industry? Are we facing the largest ponzi in History? Don’t panic. And bring a towel.

Who framed the NFT market?


<p>Within a few short weeks we have witnessed sales records that have increasingly beaten the next, mainstream media who have discovered a passion for NFTs, Elon Musk writing a song about vanity and then selling it as an&#8230;NFT and how can we forget the <a href="https://www.businesswire.com/news/home/20210317005594/en/Charmin%C2%AE-Rolls-Out-First-Ever-NFT-P" target="_blank" rel="noreferrer noopener">Charmin</a> brand of toilet paper, who is experimenting with an NFT auction with profits donated to charity?</p>



<p>Do you think that&#8217;s a lot all at once? Well, <a href="https://www.mashed.com/359860/taco-bell-just-jumped-on-the-nft-bandwagon/" target="_blank" rel="noreferrer noopener">Tacos Bell</a> and <a href="https://www.supercryptonews.com/pizza-huts-nft-pizza-now-fresh-out-of-the-oven/" target="_blank" rel="noreferrer noopener">Pizza Hut </a>are also in the game now! But our goal here is not to make an exhaustive list of all the international brands who are discovering the marketing power of NFTs but rather to ask a question that everyone who has been here since 2017 has asked: <strong>Are these the signals of a top and might it be time to sell before it all collapses?</strong></p>



<p>This is a question that <a href="https://www.youtube.com/watch?v=ovqgFbCipQs" target="_blank" rel="noreferrer noopener">some media</a> have recently wanted to answer prematurely! It almost seems that some have been eagerly awaiting a Market Correction, to finally prove that NFTs have just been in a bubble.</p>



<p>We&#8217;re really sorry to disappoint but we&#8217;ve looked at our data from all angles and there&#8217;s <strong>no NFT Market Crash to report yet!</strong></p>



<h2>What about NFT average price?</h2>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1280" height="720" src="http://100.96.1.66:3001/app/uploads/2021/04/Diapositive1.png" alt="" class="wp-image-4503" srcset="http://100.96.1.66:3001/app/uploads/2021/04/Diapositive1.png 1280w, http://100.96.1.66:3001/app/uploads/2021/04/Diapositive1-300x169.png 300w, http://100.96.1.66:3001/app/uploads/2021/04/Diapositive1-1024x576.png 1024w, http://100.96.1.66:3001/app/uploads/2021/04/Diapositive1-768x432.png 768w" sizes="(max-width: 1280px) 100vw, 1280px" /><figcaption><em>Weekly average price of all NFT (10.2020 to 04.2021)</em></figcaption></figure></div>



<p>The average price of NFTs spiked quite astoundingly in February, peaking at around $4,000 in mid-February. Since then, record sales continue to follow, averaging almost $1,500.</p>



<p>Of course, <strong>this shift in the curve was predictable</strong>, and is even reassuring as to any potential &#8220;Market Correction&#8221; that may arise.</p>



<p>This current average price represents <strong>an increase of around 10 times</strong> the average price of an NFT 6 months ago ($142 at the start of October 2020).</p>



<p>Can this be considered a price crash and the start of the market correction? Not exactly, the trend seems more to show a stabilization on a high plateau following a speculative peak.</p>



<p>The volume of assets traded has experienced an interesting lag, which can be explained by the growing interest of new buyers following record sales.</p>



<p>The volume of NFT trades per week <strong>more than doubled compared to the previous Quarter </strong>from ~ 20,000 trades per week to more than 40,000 weekly trades. Likewise, there is a high plateau phenomenon around 40,000 weekly trades, following the peak in mid-March at almost 80,000 weekly trades.</p>



<h2>What happened at the NFT projects level?</h2>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1280" height="720" src="http://100.96.1.66:3001/app/uploads/2021/04/Diapositive2.png" alt="" class="wp-image-4504" srcset="http://100.96.1.66:3001/app/uploads/2021/04/Diapositive2.png 1280w, http://100.96.1.66:3001/app/uploads/2021/04/Diapositive2-300x169.png 300w, http://100.96.1.66:3001/app/uploads/2021/04/Diapositive2-1024x576.png 1024w, http://100.96.1.66:3001/app/uploads/2021/04/Diapositive2-768x432.png 768w" sizes="(max-width: 1280px) 100vw, 1280px" /><figcaption><em>Average price of the 3 most expensive NFT type on the market (10.2020 to 04.2021)</em></figcaption></figure></div>



<p><a href="https://nonfungible.com/market-tracker/cryptopunks" target="_blank" rel="noreferrer noopener">CryptoPunks</a> is undoubtedly one of the most talked about projects in recent times, especially with regards to these record sales, respectively at <a href="https://nonfungible.com/market-tracker/cryptopunks/%CF%BE/3100" target="_blank" rel="noreferrer noopener">$7,680,621</a> and <a href="https://nonfungible.com/market-tracker/cryptopunks/%CF%BE/7804" target="_blank" rel="noreferrer noopener">$7,571,191</a> on 03.11.2021.</p>



<p>The average price of a <a href="https://nonfungible.com/market-tracker/cryptopunks" target="_blank" rel="noreferrer noopener">CryptoPunks</a> increased from $ 2,500 to $ 95,900 in the space of a few months, dropping back down to around $ 45,000 by the end of March.</p>



<p><a href="https://nonfungible.com/market-tracker/superrare" target="_blank" rel="noreferrer noopener">SuperRare</a> and <a href="https://nonfungible.com/market-tracker/hashmasks" target="_blank" rel="noreferrer noopener">HashMasks</a> projects showed more gradual growth, increasing the average value of an artwork sold on SuperRare from $ 1,232 to $ 12,166. (almost 10x).</p>



<h2>Ok&#8230; but the NFT projects market should be crashing?</h2>



<p>Not yet. We observe very strong fluctuations in terms of average value. These fluctuations are not specifically linked to the current context but rather to the sales of rare or exclusive assets that occur from time to time on each project.</p>



<p>Generally speaking, there is an overall increase in the value for each of these types of NFTs.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1280" height="720" src="http://100.96.1.66:3001/app/uploads/2021/04/Diapositive3.png" alt="" class="wp-image-4505" srcset="http://100.96.1.66:3001/app/uploads/2021/04/Diapositive3.png 1280w, http://100.96.1.66:3001/app/uploads/2021/04/Diapositive3-300x169.png 300w, http://100.96.1.66:3001/app/uploads/2021/04/Diapositive3-1024x576.png 1024w, http://100.96.1.66:3001/app/uploads/2021/04/Diapositive3-768x432.png 768w" sizes="(max-width: 1280px) 100vw, 1280px" /><figcaption><em>Average weekly NFT value evolution for the top #10 most liquid NFT markets.</em></figcaption></figure></div>



<h2>NFT still have a bright future ahead</h2>



<p>Obviously, nothing today suggests what the future of the NFT markets will be. Given the recent hype surrounding this asset class, it is possible that some drastic changes will occur in the markets in the coming weeks.</p>



<p>But importantly for the moment, we are only witnessing a stabilization phenomenon, which follows the record sales especially on CryptoPunks.</p>



<p>Let&#8217;s not cry out too soon, NFTs still have a bright future ahead of them!</p>


Are we currently in the first NFT Market Crash? Are NFT a Bubble? A lot of media are asking this question, let's answer with data!

Sorry… No NFT market crash so far!

Faced with a flourishing Art Market using Non-Fungible Tokens to develop, we take stock of the four main Art Marketplaces in this sector. How have these platforms evolved since our last Biannual Art assessment? Do any stand out? Are we beginning to see a specific placement for each Art Marketplace?

NFT Art Market review 2020


<p><a href="https://www.larvalabs.com/cryptopunks" target="_blank" rel="noreferrer noopener">The story behind CryptoPunks</a> is truly a source of inspiration when it comes to the foundations of Non-Fungible Tokens on Ethereum. <strong>Firstly CryptoPunks’ very design was disruptive</strong> in its conception as it was in stark contrast to what had been achieved on any blockchain in 2017.</p>



<p>Before the ICO or CryptoKitties craze began, the <a href="https://www.larvalabs.com/" target="_blank" rel="noreferrer noopener">Larvalabs</a> team managed to create 10,000 tokens using the ERC-20 standard. Each Punk represented a pixel art image generated by artificial intelligence.</p>



<p>Lavalabs choosing to use the ERC-20 standard was a <strong>surprise </strong>as this standard was not suitable for such a diverse distribution. With a few more months of waiting, the ERC-721 would have served them much more efficiently in terms of distribution and yet all it took was for the Larvalabs team to announce their tokens would be given to anyone with a compatible Ethereum wallet and <strong>all the CryptoPunks were claimed within days.</strong></p>



<p>Who would have thought that more than three years later and this experimental project would generate a volume of <strong>more than $3 million</strong> for all sales and continue to attract hundreds of new collectors?&nbsp;</p>



<p>What were the trends that carried CryptoPunks during these years?</p>



<div class="wp-block-image"><figure class="aligncenter size-large is-resized"><img loading="lazy" src="http://100.96.1.66:3001/app/uploads/2020/12/cryptopunks-ID-1024x576.jpg" alt="cryptopunks ID" class="wp-image-3110" width="580" height="326" srcset="http://100.96.1.66:3001/app/uploads/2020/12/cryptopunks-ID-1024x576.jpg 1024w, http://100.96.1.66:3001/app/uploads/2020/12/cryptopunks-ID-300x169.jpg 300w, http://100.96.1.66:3001/app/uploads/2020/12/cryptopunks-ID-768x432.jpg 768w, http://100.96.1.66:3001/app/uploads/2020/12/cryptopunks-ID.jpg 1200w" sizes="(max-width: 580px) 100vw, 580px" /></figure></div>



<h2><strong>2017: The Launch</strong></h2>



<p>It is May 2017 and the Larvalabs team announce to the Crypto community that they will be <strong>giving away 10,000 tokens for free</strong> and all of them are one of a kind. It only took a few hours for the registration for distribution to be complete.</p>



<p>CryptoPunks were donated to claimants and then resold between owners. This means that during the early days of NFT markets, the “proto-age” S2 2017, <strong>actually originated within a secondary market and not a primary market</strong>.</p>



<p>At that time, Opensea did not exist and the only way to exchange CryptoPunks was <strong>through the Larvalabs marketplace on their site</strong>. This was the case up until 2020 but also another constraint was present: there was no web browser wallet plugin easily compatible with Web3 applications.</p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" width="1024" height="576" src="http://100.96.1.66:3001/app/uploads/2020/12/cp-usd-sales-2017-1024x576.jpg" alt="cryptopunks usd sales 2017" class="wp-image-3107" srcset="http://100.96.1.66:3001/app/uploads/2020/12/cp-usd-sales-2017-1024x576.jpg 1024w, http://100.96.1.66:3001/app/uploads/2020/12/cp-usd-sales-2017-300x169.jpg 300w, http://100.96.1.66:3001/app/uploads/2020/12/cp-usd-sales-2017-768x432.jpg 768w, http://100.96.1.66:3001/app/uploads/2020/12/cp-usd-sales-2017.jpg 1280w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption><em>CryptoPunks &#8211; 2017 USD Volume</em></figcaption></figure></div>



<p>Even so, the launch of CryptoPunks quickly experienced a craze during the first few weeks which soon ran out of steam from August. The reason for this lies in <strong>the lack of new collectors</strong> despite the high volume of trade.</p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" width="1024" height="576" src="http://100.96.1.66:3001/app/uploads/2020/12/cp-collectors-assets-sales-2017-1024x576.jpg" alt="cryptopunks collectors assets sales 2017" class="wp-image-3104" srcset="http://100.96.1.66:3001/app/uploads/2020/12/cp-collectors-assets-sales-2017-1024x576.jpg 1024w, http://100.96.1.66:3001/app/uploads/2020/12/cp-collectors-assets-sales-2017-300x169.jpg 300w, http://100.96.1.66:3001/app/uploads/2020/12/cp-collectors-assets-sales-2017-768x432.jpg 768w, http://100.96.1.66:3001/app/uploads/2020/12/cp-collectors-assets-sales-2017.jpg 1280w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption><em>CryptoPunks &#8211; 2017 Unique buyers vs unique assets</em></figcaption></figure></div>



<p><strong>Out of 10,000 NFTs only 720 of them were sold to 28 new collectors during the last 6 months of 2017.</strong></p>



<p>Also, it&#8217;s important to note that a huge quantity of CryptoPunks were kept in a safe place during the Ethereum surge at $1200, possibly due to the high network charges at that time but also due to a new competitor with a more modern design: CryptoKitties.</p>



<h2><strong>2018 &#8211; 2019: The Sense of Value</strong></h2>



<p>With a high start to the year in 2018 and then following on for the rest of the year with lower prices, it takes until 2019 for collectors to pull out from this gloomy period and show renewed interest in the potential of CryptoPunks.</p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" width="1024" height="576" src="http://100.96.1.66:3001/app/uploads/2020/12/cp-usd-sales-2018-19-1024x576.jpg" alt="cryptopunks usd sales 2018-19" class="wp-image-3108" srcset="http://100.96.1.66:3001/app/uploads/2020/12/cp-usd-sales-2018-19-1024x576.jpg 1024w, http://100.96.1.66:3001/app/uploads/2020/12/cp-usd-sales-2018-19-300x169.jpg 300w, http://100.96.1.66:3001/app/uploads/2020/12/cp-usd-sales-2018-19-768x432.jpg 768w, http://100.96.1.66:3001/app/uploads/2020/12/cp-usd-sales-2018-19.jpg 1280w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption> <em>CryptoPunks &#8211; 2018-2019 USD Volume</em> </figcaption></figure></div>



<p>Unlike CryptoKitties which can be generated ad infinitum, the fixed quantity of CryptoPunks begs <strong>the question of the scarcity of a digital artwork on the blockchain in the NFT ecosystem</strong>. Whether generated by an AI or a human, the blockchain proves the authenticity of a digital creation in a tamper-proof way.</p>



<p>This signature is one of the central criteria of the value of a blockchain work and thanks to the arrival of SuperRare and other art based marketplaces, many artists have been able to grow in this market and in the process bring it to the attention of a wider audience.</p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" width="1024" height="576" src="http://100.96.1.66:3001/app/uploads/2020/12/cp-collectors-assets-sales-2018-19-1024x576.jpg" alt="cryptopunks collectors assets sales 2018-19" class="wp-image-3105" srcset="http://100.96.1.66:3001/app/uploads/2020/12/cp-collectors-assets-sales-2018-19-1024x576.jpg 1024w, http://100.96.1.66:3001/app/uploads/2020/12/cp-collectors-assets-sales-2018-19-300x169.jpg 300w, http://100.96.1.66:3001/app/uploads/2020/12/cp-collectors-assets-sales-2018-19-768x432.jpg 768w, http://100.96.1.66:3001/app/uploads/2020/12/cp-collectors-assets-sales-2018-19.jpg 1280w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption> <em>CryptoPunks &#8211; 2018-2019 Unique buyers vs unique assets</em> </figcaption></figure></div>



<p>So why was there such little volume during 2018-2019? <strong>Probably because many other NFTs projects appeared on Ethereum!</strong> </p>



<p>The owners of NFTs took an interest and interacted with these new projects &#8230;letting their Punks sleep or refusing to sell them.</p>



<h2><strong>2020: Adaptation</strong></h2>



<p>At the same time, the more the Crypto Art market developed, the more the very nature of CryptoPunks naturally made them become even more rare. The proliferation of artistic NFTs only served <strong>to increase the value of Punks as they are the Ethereum pioneers of such projects</strong>.</p>



<p>2019 was the year of the birth of Crypto Art and with an entire family of NFTs growing, the real public interest began towards the end of this year, only continuing to grow exponentially throughout 2020.</p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" width="1024" height="576" src="http://100.96.1.66:3001/app/uploads/2020/12/cp-usd-sales-2020-1024x576.jpg" alt="cryptopunks usd sales 2020" class="wp-image-3109" srcset="http://100.96.1.66:3001/app/uploads/2020/12/cp-usd-sales-2020-1024x576.jpg 1024w, http://100.96.1.66:3001/app/uploads/2020/12/cp-usd-sales-2020-300x169.jpg 300w, http://100.96.1.66:3001/app/uploads/2020/12/cp-usd-sales-2020-768x432.jpg 768w, http://100.96.1.66:3001/app/uploads/2020/12/cp-usd-sales-2020.jpg 1280w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>  <em>CryptoPunks &#8211; 2020 USD Volume</em>  </figcaption></figure></div>



<p>It was from April that USD volumes started to regain colour again, but as with all other projects during this year, the exorbitant Summer Ethereum gas fees calmed potential buyers&#8217; appetite immensely.</p>



<p><strong>Even so, sales for the first 6 months of the year were enough to generate $477,958 which is more than the first three years of CryptoPunks combined.</strong></p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" width="1024" height="576" src="http://100.96.1.66:3001/app/uploads/2020/12/cp-collectors-assets-sales-2020-1024x576.jpg" alt="cryptopunks collectors assets sales 2020" class="wp-image-3106" srcset="http://100.96.1.66:3001/app/uploads/2020/12/cp-collectors-assets-sales-2020-1024x576.jpg 1024w, http://100.96.1.66:3001/app/uploads/2020/12/cp-collectors-assets-sales-2020-300x169.jpg 300w, http://100.96.1.66:3001/app/uploads/2020/12/cp-collectors-assets-sales-2020-768x432.jpg 768w, http://100.96.1.66:3001/app/uploads/2020/12/cp-collectors-assets-sales-2020.jpg 1280w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>  <em>CryptoPunks &#8211; 2020 Unique buyers vs unique assets</em>  </figcaption></figure></div>



<p>As for collectors and especially new Punks purchased, there too the number exploded during the first 6 months of the year: <strong>82 new collectors joined the ranks of 110 historical “secondary” owners of CryptoPunks.</strong> Seemingly these newcomers were more curious than the old ones or at least had more resources!</p>



<p>Indeed, in June 2020, <strong>594 never before sold Punks are to change owners</strong> and find a place in a new wallet.</p>



<p>It was during the start of the school year and the global craze around NFTs that arose after the “DeFI Degens” that arguably explains why September will mark a new record in CryptoPunks history: <strong>September alone generated $1M in total sales and 651 punks have been shared among 138 new collectors.</strong></p>



<p>From January 1 to November 30, 2020, <strong>the global sale of CryptoPunks will have generated $2,742,983, attracted 360 new collectors and 1,645 punks changed ownership for the first time in their existence.</strong></p>



<h2><strong>The CryptoPunks evolution is rising</strong></h2>



<p>In a single year, the historic Larvalabs project managed to surpass the performance of the previous three years: <strong>+700% in terms of USD volume, +300% new users and -0.9% new Punks sold.</strong></p>



<p>To put these figures into perspective it&#8217;s important to remember: a total of 3,447 punks found the initial estimate of their value as determined by 1,645 collectors who negotiated with the historical owners of the airdrop. Through their original nature and unique technological dimension, the first owners have naturally developed an attachment to their Punks over time.</p>



<p>This means that there are still a little over <strong>6,500 jealously guarded punks </strong>from May 2017 who still haven&#8217;t found a price estimate. Their low liquidity combined with their seniority makes CryptoPunks an asset class to watch very closely in the coming years.</p>



<p>The current market is only an emerging part and the eventual return to market of the rest of the supply of Punks and could well hold some big surprises!&nbsp;</p>



<p><strong>The race for the rarest CryptoPunks is on, but what will be the most valuable criteria?</strong></p>


Since their launch in 2017 CryptoPunks have evolved with the times while preserving their identity. How did they manage this while still remaining so connected to their community?

The CryptoPunks Evolution


<p>Do you know about one of the most expensive NFTs in existence? Formula 1, 1-1-1 sold by F1 Delta Time in 2019! We&#8217;ve assessed its value, among several thousand other NFTs in what is arguably the most valuable portfolio of digital assets in the world to date.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1027" height="401" src="http://100.96.1.66:3001/app/uploads/2020/11/Image1.jpg" alt="" class="wp-image-3007" srcset="http://100.96.1.66:3001/app/uploads/2020/11/Image1.jpg 1027w, http://100.96.1.66:3001/app/uploads/2020/11/Image1-300x117.jpg 300w, http://100.96.1.66:3001/app/uploads/2020/11/Image1-1024x400.jpg 1024w, http://100.96.1.66:3001/app/uploads/2020/11/Image1-768x300.jpg 768w" sizes="(max-width: 1027px) 100vw, 1027px" /></figure></div>



<h2>What is the MetaPurse Fund?</h2>



<p>The <a rel="noreferrer noopener" href="https://www.metapurse.fund/" target="_blank">MetaPurse Fund</a> is an investment fund which specializes in the identification and early-stage investment of innovative and promising NFT projects.</p>



<p>They have already invested in a large portfolio of projects. Among the most famous are held in the metaverses of <a rel="noreferrer noopener" href="https://nonfungible.com/market/history/decentraland" target="_blank">Decentraland</a>, <a rel="noreferrer noopener" href="https://nonfungible.com/market/history/cryptovoxels" target="_blank">CryptoVoxels</a> and <a rel="noreferrer noopener" href="https://nonfungible.com/market/history/somniumspace" target="_blank">Somnium Space</a> as well as exceptional collectibles such as <a rel="noreferrer noopener" href="https://nonfungible.com/market/history/f1deltatime" target="_blank">F1 Delta Time</a> and also in the Arts with <a rel="noreferrer noopener" href="https://nonfungible.com/market/history/asyncart" target="_blank">Async Art</a>, <a rel="noreferrer noopener" href="https://nonfungible.com/market/history/superrare" target="_blank">SuperRare</a> and <a rel="noreferrer noopener" href="https://nonfungible.com/market/history/makersplace" target="_blank">MakersPlace</a>.</p>



<p>The Fund is funded by <a rel="noreferrer noopener" href="https://twitter.com/MetaKovan" target="_blank">MetaKovan</a> and co-managed by <a rel="noreferrer noopener" href="https://twitter.com/twobadour" target="_blank">Twobadour</a>.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="277" height="74" src="http://100.96.1.66:3001/app/uploads/2020/11/image-3.png" alt="" class="wp-image-3008"/></figure></div>



<p>The MetaPurse Fund called upon NonFungible.com to produce a Quarterly Valuation of their portfolio and thus ensure the transparency of the process backed by a recognized trusted third party.</p>



<div class="wp-container-1 wp-block-buttons is-content-justification-center">
<div class="wp-block-button"><a class="wp-block-button__link" href="https://nonfungible.com/static/november-2020-metapurse-fund-valuation.pdf" target="_blank" rel="noreferrer noopener">Read the Metapurse Fund Portofolio valuation</a></div>
</div>



<p>As MetaKovan said to NonFungible.com:</p>



<blockquote class="wp-block-quote"><p>&#8220;<em>This audit is a great tool because it gives us a much more clear indicator of where to put our money next.</em>&#8220;</p><cite>MetaKovan, MetaPurse Fund founder</cite></blockquote>



<h2>A $3.2 Million Portfolio..</h2>



<p>The evaluated portfolio has a total value of $3.2 million or about 7,200 $ETH.</p>



<p>The portfolio is divided between 15 wallets and 2,015 assets from 18 different projects. The distribution of assets between projects is as indicated in the chart below.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="714" height="612" src="http://100.96.1.66:3001/app/uploads/2020/11/image-1.png" alt="" class="wp-image-3002" srcset="http://100.96.1.66:3001/app/uploads/2020/11/image-1.png 714w, http://100.96.1.66:3001/app/uploads/2020/11/image-1-300x257.png 300w" sizes="(max-width: 714px) 100vw, 714px" /></figure></div>



<p>The value lies mainly in the metaverse and more precisely Decentraland, with more than 70% of the value in LAND &amp; ESTATES.</p>



<p>The MetaPurse Fund owns one of the <a rel="noreferrer noopener" href="https://market.decentraland.org/contracts/0x959e104e1a4db6317fa58f8295f586e1a978c297/tokens/2556" target="_blank">largest ESTATES on the map</a> (made up of 546 plots), side by side to a set of 705 individual plots.</p>



<p>This set represents a potential ESTATE of 1,275 LAND with an estimated value of more than $1.8 Million.</p>



<p>Find the details of these charts, the full results of the audit and all of our methodologies explained in the <a href="https://nonfungible.com/static/november-2020-metapurse-fund-valuation.pdf" target="_blank" rel="noreferrer noopener">audit available here</a>.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="693" height="599" src="http://100.96.1.66:3001/app/uploads/2020/11/image-2.png" alt="" class="wp-image-3003" srcset="http://100.96.1.66:3001/app/uploads/2020/11/image-2.png 693w, http://100.96.1.66:3001/app/uploads/2020/11/image-2-300x259.png 300w" sizes="(max-width: 693px) 100vw, 693px" /></figure></div>



<h2>..and probably more!</h2>



<p>In the audit you will notice that some assets contained in the different wallets have not been estimated. Only the purchase value of these assets has been taken into account, for the moment.</p>



<p>These assets are</p>



<ul><li>An Urbit Galaxy, for which no on-chain transaction allows an estimate of its value to date</li><li>SoRare cards hosted on the Loom side-chain, which NonFungible.com does not support, yet.</li></ul>



<p>The total purchase value of these assets is $925,524.</p>



<h2>How much is the once most expensive NFT in the world worth now?</h2>



<p>One of the main challenges of this Portfolio Valuation has been to estimate extremely rare, unique and exclusive assets, starting with <a rel="noreferrer noopener" href="https://nonfungible.com/market/history/f1deltatime?filter=saleType%3D&amp;length=10&amp;sort=usdPrice%3Ddesc&amp;start=0" target="_blank">F1 Delta Time 1-1-1 sold in May 2019, for an incredible price of 415.9 ETH (~$111k)</a>.</p>



<p>Based on the market trends of comparable assets (Legendary &amp; APEX cars) between the primary and secondary market, we observed an average increase of 11% in the $ETH value of these types of exclusive asset. Since &#8220;APEX&#8221; cars have no existing secondary market volume, we&#8217;ve taken the average growth from the Legendary asset class and applied that to the Apex class.</p>



<blockquote class="wp-block-quote"><p><strong>Thus, we estimate to date that the F1 Delta Time 1-1-1 is currently worth 461.65 ETH (approximately $ 210,000).</strong></p></blockquote>



<h2>Read the complete portfolio valuation</h2>



<p>If you would like to learn more about the methodologies applied, the distribution of value between projects and read all the conclusions of our audit, we invite you to consult the full version available on our site.</p>



<div class="wp-container-2 wp-block-buttons is-content-justification-center">
<div class="wp-block-button"><a class="wp-block-button__link" href="https://nonfungible.com/static/november-2020-metapurse-fund-valuation.pdf" target="_blank" rel="noreferrer noopener">Read the Metapurse Fund Portofolio valuation</a></div>
</div>


Do you know the most expensive NFT in the world? Formula 1-1-1 sold by F1 Delta Time in 2019! We have assessed its value, among several thousand other NFTs, in what is probably the most valuable portfolio of digital assets in the world to date.

We’ve valued one of the biggest NFT portfolios in the world!


<p>This is no longer a discovery, in recent weeks the price of transaction fees has reached record levels. Creating a smart contract cost around $300, sending a simple transaction $5, transferring an NFT $20… Ouch!</p>



<p>Faced with this increase which took players in the sector by surprise, although total and average sales (USD) have increased significantly, we have seen a significant drop in the use of Dapps since mid-July.</p>



<p>Now that the gas fees are starting to decline, what is the outcome of this event? What were the trends that emerged from this turbulent period?</p>



<h2>The High Ethereum Gas Fees</h2>



<p>As a reminder, at the end of 2017 and beginning of 2018 the Ethereum blockchain experienced a historic bottleneck due to CryptoKitties, the average price of a transaction was 90 gwei. At the time, it was only transferring and breeding CryptoKitties or, sending of Ethereum and ICO tokens on the blockchain.</p>



<p>With the advent of DeFI (or Decentralized Finance) and all NFTs projects, the network has been called upon by many more so-called complex transactions.<br><br>To fully understand why Ethereum transaction fees “stuck” at 465 Gwei, Vitalik Buterin made a very easy to understand <a href="https://twitter.com/VitalikButerin/status/1300990491241062400" target="_blank" rel="noreferrer noopener">explanatory thread</a>. This is purely mathematical, it is because of the limitation of the filling of blocks.</p>



<p>With a limit of 12.5 million gas per block, 465 Gwei is the best compromise so that the transaction is carried out without having empty space in the block. For example, if everyone sent a 1000 Gwei transactions, a 6 Gwei transaction would find its place in the block and be processed on the way.</p>



<p>For Vitalik, increasing the size of the blocks would therefore make no sense.</p>



<h2><strong>NFT Dapp Statement</strong></h2>



<p>To fully understand the consequences of these exorbitant fees for Dapps, we analyzed 5 projects from the first week of July until the last week of August:</p>



<ul><li>Axie Infinity</li><li>Decentraland</li><li>CryptoKitties</li><li>SuperRare</li><li>Unstoppable Domains</li><li>Gods Unchained</li><li>SoRare</li><li>Ethereum Name Service</li><li>Makersplace</li></ul>



<p>These names should sound familiar to you, they are the ones that appear mainly in our newsletter and weekly publications of weekly statistics on social networks.</p>



<p>During these two months, the volume of transactions, dollars or “Weekly Active Users” of these projects were disrupted but not all in the same way. There was, however, one thing in common, but we will come back to that later.</p>



<h3><strong>Weekly Active Users</strong></h3>



<p>The community of a project is like the stones of a castle. In the face of an earthquake, it is the strength of the foundation that will hold the construction in place.</p>



<figure class="wp-block-image size-large"><img loading="lazy" width="792" height="416" src="http://100.96.1.66:3001/app/uploads/2020/09/july-august-waa.jpg" alt="" class="wp-image-2667" srcset="http://100.96.1.66:3001/app/uploads/2020/09/july-august-waa.jpg 792w, http://100.96.1.66:3001/app/uploads/2020/09/july-august-waa-300x158.jpg 300w, http://100.96.1.66:3001/app/uploads/2020/09/july-august-waa-768x403.jpg 768w" sizes="(max-width: 792px) 100vw, 792px" /></figure>



<h3><strong>Axie Infinity</strong></h3>



<p>The Axie community grew strongly from early July.The reason is very simple, and it&#8217;s thanks to <a href="https://www.coingecko.com/en/coins/small-love-potion" target="_blank" rel="noreferrer noopener">Small Love Potions</a> (SLP), rewards obtained in-game by completing quests or fighting other players. Although it was possible to get some before then, July 2nd is the date the $SLP was listed… on Uniswap!</p>



<p>In addition, the announcement of a dedicated gaming sidechain named Ronin in early August had the desired effect!</p>



<h3><strong>Sorare</strong></h3>



<p>Transaction fees that take place in Sorare are paid by the team. Without needing to update anything, players continued to be interested in the game!</p>



<h3><strong>Ethereum Name Services</strong></h3>



<p>The number of ENS users gradually increased over the two months before peaking at 798 weekly users. The reason is not to be found in a particular update of the project but rather in the expiration of ENS domain names.</p>



<h3><strong>Others&nbsp;NFT projects</strong></h3>



<p>Regarding the other projects, they unfortunately suffered from a lack of activity on the part of their usual users:</p>



<ul><li>Artists could not afford to pay a $40 transaction fee to sell low value work.</li><li>Collectibles (CryptoKitties or wearables items from Decentraland) were mostly worth less than transaction fees. Gods Unchained encountered the same problem.</li></ul>



<p>Even if the number of WAA is for the majority of projects on the decline, this does not mean that there has not been “off-chain” activity. The assets still exist, so we think this is just a hiatus for users from using the Ethereum blockchain while they wait for fees to return to normal!</p>



<h2><strong>Sales Transactions</strong></h2>



<figure class="wp-block-image size-large"><img loading="lazy" width="792" height="416" src="http://100.96.1.66:3001/app/uploads/2020/09/july_august-sales-tx.jpg" alt="" class="wp-image-2668" srcset="http://100.96.1.66:3001/app/uploads/2020/09/july_august-sales-tx.jpg 792w, http://100.96.1.66:3001/app/uploads/2020/09/july_august-sales-tx-300x158.jpg 300w, http://100.96.1.66:3001/app/uploads/2020/09/july_august-sales-tx-768x403.jpg 768w" sizes="(max-width: 792px) 100vw, 792px" /></figure>



<h3><strong>CryptoKitties</strong></h3>



<p>The number of transactions for the sale of CryptoKtties assets is usually around 10,000. August 7 is the date of the announcement of the finalization of the Dapper Labs fundraiser for the Flow blockchain… and the peak of the number of sales of this chaotic period. The number of sales, after that, continued to decline without regaining its previous heights.</p>



<h3><strong>Sorare</strong></h3>



<p>Sales of Sorare were largely disrupted during the month of August. Each comeback is the announcement of a new figure who has joined the ranks of the Fantasy / Strategy game.</p>



<h3><strong>Axie Infinity</strong></h3>



<p>Axie&#8217;s number of sales has not changed much. This is simply explained by the interest of players in accumulating SLPs, which are more profitable than an Axie which costs less than transaction fees.</p>



<h3><strong>Others NFT projects</strong></h3>



<p>The other projects that did not find alternatives to cover the costs of sales saw their number decline.</p>



<h2><strong>USD volume from sales</strong></h2>



<figure class="wp-block-image size-large"><img loading="lazy" width="792" height="416" src="http://100.96.1.66:3001/app/uploads/2020/09/july-august-sales-USD.jpg" alt="" class="wp-image-2669" srcset="http://100.96.1.66:3001/app/uploads/2020/09/july-august-sales-USD.jpg 792w, http://100.96.1.66:3001/app/uploads/2020/09/july-august-sales-USD-300x158.jpg 300w, http://100.96.1.66:3001/app/uploads/2020/09/july-august-sales-USD-768x403.jpg 768w" sizes="(max-width: 792px) 100vw, 792px" /></figure>



<h3><strong>Sorare</strong></h3>



<p>The announcements having had their effect, Sorare was able to attract traders who knew how to take advantage of the names of football players.</p>



<p>The increasing evolution of the USD volume linked to sales is explained by the combination of the increasing number of users and the new features that the game has offered.</p>



<h3><strong>SuperRare</strong></h3>



<p>True to form, SuperRare has managed to create more dollar volume for its sales than its competitors. The continued arrival of new artists as well as a number of collectors accustomed to paying a high price to buy the works has allowed the platform to maintain its level during this period.</p>



<h3><strong>Decentraland</strong></h3>



<p>Despite declining user and transaction counts, Decentraland&#8217;s USD volume managed to gradually increase over time. We will see in the next section the reason for this evolution.</p>



<h3><strong>Ethereum Name Service</strong></h3>



<p>The first names to be reserved during the launch of ENS were the ones that were worth the most at the time of booking: these are the ones that contain 3 to 4 characters.</p>



<p>When they expired, the cost of renewing them was understandably high, but the successful adoption of ENS resulted in some fairly expensive sales.</p>



<h3><strong>Others NFT Projects</strong></h3>



<p>Overall, the other projects have not experienced a drastic decline during this period or have tended to gradually increase.</p>



<h2><strong>Average USD sales</strong></h2>



<p>The common point of the evolution of these projects over the last two months, we have found in the average sales in USD: all the averages are on the rise!</p>



<p>For better readability of the graphics, we have separated them into 3:</p>



<figure class="wp-block-image size-large"><img loading="lazy" width="792" height="416" src="http://100.96.1.66:3001/app/uploads/2020/09/july_august-DCL-SR-average.jpg" alt="" class="wp-image-2670" srcset="http://100.96.1.66:3001/app/uploads/2020/09/july_august-DCL-SR-average.jpg 792w, http://100.96.1.66:3001/app/uploads/2020/09/july_august-DCL-SR-average-300x158.jpg 300w, http://100.96.1.66:3001/app/uploads/2020/09/july_august-DCL-SR-average-768x403.jpg 768w" sizes="(max-width: 792px) 100vw, 792px" /></figure>



<p>SuperRare and Decentraland, with an average ranging from $ 400 to $ 1800.</p>



<figure class="wp-block-image size-large"><img loading="lazy" width="792" height="416" src="http://100.96.1.66:3001/app/uploads/2020/09/july_august-GU-UD-MKP-average.jpg" alt="" class="wp-image-2671" srcset="http://100.96.1.66:3001/app/uploads/2020/09/july_august-GU-UD-MKP-average.jpg 792w, http://100.96.1.66:3001/app/uploads/2020/09/july_august-GU-UD-MKP-average-300x158.jpg 300w, http://100.96.1.66:3001/app/uploads/2020/09/july_august-GU-UD-MKP-average-768x403.jpg 768w" sizes="(max-width: 792px) 100vw, 792px" /></figure>



<p>Makersplace, Unstoppable Domains, and Gods Unchained have them, averaging between $0 and around $300.</p>



<p>The peak the project experienced at the end of August was due to the sale of the &#8220;sex.crypto&#8221; domain name at $89 796, disrupting the usual average.</p>



<figure class="wp-block-image size-large"><img loading="lazy" width="792" height="416" src="http://100.96.1.66:3001/app/uploads/2020/09/july_august-Axie-CK-Sorare-ENS-average.jpg" alt="" class="wp-image-2672" srcset="http://100.96.1.66:3001/app/uploads/2020/09/july_august-Axie-CK-Sorare-ENS-average.jpg 792w, http://100.96.1.66:3001/app/uploads/2020/09/july_august-Axie-CK-Sorare-ENS-average-300x158.jpg 300w, http://100.96.1.66:3001/app/uploads/2020/09/july_august-Axie-CK-Sorare-ENS-average-768x403.jpg 768w" sizes="(max-width: 792px) 100vw, 792px" /></figure>



<p>The Axie Infinity, CryptoKitties, Sorare, and Ethereum Name Service projects have seen their average sales in USD range from $ 5 to around $ 180.</p>



<h2>Troubles Times ahead</h2>



<p>In this troubled time, vendors as well as developers had to find new alternatives to keep the business afloat.</p>



<p>For developers, many are now thinking about using sidechains or even other blockchains for their projects in the future. Dapper Labs, for example, is experimenting with its Flow blockchain with different projects as we speak and Decentraland is running Game Jam focused on Matic.</p>



<p>Only those who had sufficiently valuable items succeeded in doing so. The other users, meanwhile, were excluded from these high-profile transactions&#8230;</p>


In the madness of record-breaking gas prices, how has the NFT universe reacted to the frenzy of the DeFI?

Gas Fees and NFTs: July and August Statement


<p>When we were talking about <a href="http://nonfungible.com/academy/nft/difference-blockchain-crypto-gaming" target="_blank" rel="noreferrer noopener">the difference between Crypto and Blockchain gaming</a>, we had drawn a table between the market leaders and their challengers. Among the “Metaverse” classification, <a href="http://nonfungible.com/market-tracker/decentraland" target="_blank" rel="noreferrer noopener">Decentraland</a> was unmistakably the market leader and its biggest competitor at that time was <a href="http://nonfungible.com/market-tracker/cryptovoxels" target="_blank" rel="noreferrer noopener">Voxels</a>. Mor recently, <a href="http://nonfungible.com/market-tracker/somniumspace" target="_blank" rel="noreferrer noopener">Somnium Space</a> came to round off the horizon of projects offering a universe accessible in high-end virtual reality.</p>



<p>Nowadays, is Decentraland still king, both in terms of active wallets and volume traded?</p>



<h2><strong>Evolution of Sales USD through time</strong></h2>



<p>Before going into detail, here is the evolution of the sales USD volume of each of the projects since their launch. This includes land (LAND, Parcel, Estate…) but also collectible objects (clothes, color…) and decentralized names (Name) within the metaverse.</p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" width="1024" height="468" src="http://100.96.1.66:3001/app/uploads/2020/09/SalesUSD-1024x468.png" alt="" class="wp-image-2645" srcset="http://100.96.1.66:3001/app/uploads/2020/09/SalesUSD-1024x468.png 1024w, http://100.96.1.66:3001/app/uploads/2020/09/SalesUSD-300x137.png 300w, http://100.96.1.66:3001/app/uploads/2020/09/SalesUSD-768x351.png 768w, http://100.96.1.66:3001/app/uploads/2020/09/SalesUSD.png 1437w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure></div>



<p>The cumulative dollar total for these three projects represents a sales volume of <strong>$28,553,799</strong>. The chart excludes Decentraland&#8217;s initial LAND sales for the month of December 2018 valued at <strong>$5,815,255</strong>.&nbsp;</p>



<p>Separately, this corresponds to:</p>



<ul><li><strong>Decentraland</strong>, since March 2018:&nbsp;$24,756,378</li><li><strong>CryptoVoxels</strong>, since June 2018:&nbsp;$2,108,521</li><li><strong>Somnium Space</strong>, since October 2019: $1,688,898</li></ul>



<p>If we take a closer look at these numbers, let&#8217;s separate the land sales numbers (LAND, EST, PARCEL and CVPA) from the rest:</p>



<ul><li><strong>Decentraland</strong> (LAND and EST): $24,210,750&nbsp;</li><li><strong>CryptoVoxels</strong> (CVPA): $2,086,971</li><li><strong>Somnium Space</strong> (PARCEL):&nbsp;$1,586,743</li></ul>



<p>It is interesting to note that during the first half of 2020 is when the volumes of the two “challengers” have increased to similar levels as Decentraland.</p>



<figure class="wp-block-image size-large"><img loading="lazy" width="1024" height="531" src="http://100.96.1.66:3001/app/uploads/2020/09/SalesUSD-2020.png" alt="" class="wp-image-2647" srcset="http://100.96.1.66:3001/app/uploads/2020/09/SalesUSD-2020.png 1024w, http://100.96.1.66:3001/app/uploads/2020/09/SalesUSD-2020-300x156.png 300w, http://100.96.1.66:3001/app/uploads/2020/09/SalesUSD-2020-768x398.png 768w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<p>While Decentraland&#8217;s dominance continues to be visible, the appearances of &#8220;flippening&#8221; by the two challengers are milestones in the history of these projects.</p>



<h2><strong>Evolution of Sales volume through time</strong></h2>



<p>Although more than 95% of the dollar volume traded is represented by the sale of LAND, this is not the case for the volume of sales over time. Therefore, we have separated the land sales from the rest of the NFTs of the projects for the following charts.</p>



<h3><strong>LAND</strong></h3>



<figure class="wp-block-image size-large"><img loading="lazy" width="1024" height="454" src="http://100.96.1.66:3001/app/uploads/2020/09/LAND-SalesVolume-1024x454.png" alt="" class="wp-image-2648" srcset="http://100.96.1.66:3001/app/uploads/2020/09/LAND-SalesVolume-1024x454.png 1024w, http://100.96.1.66:3001/app/uploads/2020/09/LAND-SalesVolume-300x133.png 300w, http://100.96.1.66:3001/app/uploads/2020/09/LAND-SalesVolume-768x340.png 768w, http://100.96.1.66:3001/app/uploads/2020/09/LAND-SalesVolume.png 1268w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<p>In total, there were 28,693 sales for the LAND of the three projects combined. In this chart, 9,826 sales in December 2018 have been removed.</p>



<p>Separately, this represents for the three projects:</p>



<ul><li><strong>Decentraland</strong>, since March 2018: 20,855 sales</li><li><strong>CryptoVoxels</strong>, since June 2018: 5,638 sales</li><li><strong>Somnium Space</strong>, since October 2019: 2,200 sales</li></ul>



<p>This time, the “flippening” between CryptoVoxels and Decentraland happened during the year 2019 and the trend has gradually continued during the year 2020.</p>



<h3><strong>Collectibles</strong></h3>



<p>Regarding collectibles, out of all 45,595 sales that have existed since April 2019, 44,799 are attributed to Decentraland. And among all these sales, 44,172 were made from February to August 2020.</p>



<p>Decentraland therefore completely crushes competition with “derivative” metaverse sales.</p>



<h2><strong>Evolution of Active wallets through time</strong></h2>



<p>Similar to the sales volume, we have separated the number of LAND wallets and “collectibles”. As a reminder, the wallets whom we consider to be active are those who have interacted over the week with the dedicated smart contract.</p>



<h3><strong>NFT Virtual worlds (LAND)</strong></h3>



<figure class="wp-block-image size-large"><img loading="lazy" width="1024" height="464" src="http://100.96.1.66:3001/app/uploads/2020/09/LAND-SalesActiveWallets-1024x464.png" alt="" class="wp-image-2649" srcset="http://100.96.1.66:3001/app/uploads/2020/09/LAND-SalesActiveWallets-1024x464.png 1024w, http://100.96.1.66:3001/app/uploads/2020/09/LAND-SalesActiveWallets-300x136.png 300w, http://100.96.1.66:3001/app/uploads/2020/09/LAND-SalesActiveWallets-768x348.png 768w, http://100.96.1.66:3001/app/uploads/2020/09/LAND-SalesActiveWallets.png 1106w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<p>As of March 2018, there have been a total of <strong>14,437</strong> active wallets for the three projects. This corresponds, separately to:</p>



<ul><li><strong>Decentraland</strong>: 10,245 Active wallets</li><li><strong>CryptoVoxels</strong>: 3,181 Active wallets</li><li><strong>Somnium Space</strong>: 1,011 Active wallets</li></ul>



<p>Once again, Decentraland seems to be the clear leader during 2018 and 2019 but the trend seems to be changing in 2020.</p>



<h3><strong>NFT Collectibles</strong></h3>



<p>As with sales volume, the number of active wallets of collectibles was dominated primarily by Decentraland. With <strong>17,670</strong> wallets compared to <strong>7,232</strong> for CryptoVoxels and <strong>2,126</strong> for Somnium Space, Decentraland’s dominance is still overwhelming.</p>



<p>In total, we have counted <strong>37,273</strong> unique wallets per week since March 2018 on all three projects.</p>



<h2>Decentraland stays king</h2>



<p>Marked by a strong dominance of Decentraland for two years, the two challengers went to great lengths to develop projects that could compete with the leader.</p>



<p>In the first half of 2020, these efforts seem to have started to bear fruit, thanks to more affordable LAND prices on the one hand and more accessible creation possibilities on the other.</p>



<p>Other than the sales USD volume traded, the two challengers combined manage to outperform Decentraland in terms of active wallets and number of sales.</p>



<p>Perhaps it is only a matter of time before a real balance is found between the three platforms, in the meantime, Decentraland still remains the strong leader.</p>


After record sales at its launch, the leader of the metaverse saw competition arrive quickly. Did Decentraland manage to keep first place?

Decentraland, still king of the metaverse?


<p>The fourth and last article in our series of analysis on the first half of 2020 offers you a concentrate of insights on the Virtual Real Estate segment, a segment that has historically driven the growth of NFTs with the first $LAND Auction of <a href="https://nonfungible.com/market-tracker/decentraland" target="_blank" rel="noreferrer noopener">Decentraland</a> in late 2017.</p>



<p>A particular focus will be given to the evolution of the <a href="https://decentraland.org/" target="_blank" rel="noreferrer noopener">Decentraland</a> market, with the arrival of the new asset classes: Wearables and Names.</p>



<h2>Virtual Real Estate Market Trends</h2>



<p><a href="https://nonfungible.com/market-tracker/somniumspace" target="_blank" rel="noreferrer noopener">Somnium Space</a> offers the greatest latitude in terms of price differences, from less than $200 to more than $1,500 in certain weeks of April. This increase in price over the period is enough to take first place at Decentraland on the average price of plots.</p>



<p><a href="https://nonfungible.com/market-tracker/decentraland" target="_blank" rel="noreferrer noopener">Decentraland</a> experienced a slight drop with an average price of $LAND which remains above the $700 mark.</p>



<p><a href="https://nonfungible.com/market-tracker/thesandbox" target="_blank" rel="noreferrer noopener">The Sandbox</a> and <a href="https://nonfungible.com/market-tracker/megacryptopolis" target="_blank" rel="noreferrer noopener">MegaCryptoPolis</a> stabilize with average prices per plot around $50 but we still observe a relative increase in the average price of all plots.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1280" height="720" src="http://100.96.1.66:3001/app/uploads/2020/07/Diapositive12.png" alt="" class="wp-image-2464" srcset="http://100.96.1.66:3001/app/uploads/2020/07/Diapositive12.png 1280w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive12-300x169.png 300w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive12-1024x576.png 1024w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive12-768x432.png 768w" sizes="(max-width: 1280px) 100vw, 1280px" /></figure></div>



<p>The distribution of the market from the point of view of the transferred USD leaves the share to the historic project: Decentraland, with 40% market share.</p>



<p>Note the important place occupied by the latest project arrived in the sector: The Sandbox, whose 14% market share is mainly due to the successful presale LAND at the end of March.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1280" height="720" src="http://100.96.1.66:3001/app/uploads/2020/07/Diapositive13-1.png" alt="" class="wp-image-2503" srcset="http://100.96.1.66:3001/app/uploads/2020/07/Diapositive13-1.png 1280w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive13-1-300x169.png 300w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive13-1-1024x576.png 1024w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive13-1-768x432.png 768w" sizes="(max-width: 1280px) 100vw, 1280px" /></figure></div>



<h2>Focus on Decentraland Market Trends</h2>



<p>The <a href="https://nonfungible.com/market-tracker/decentraland">Decentraland</a> market remains predominantly supported by the secondary market of $LAND and $ESTATES, which still represent 88% of the market from the point of view of the USD. The $WEARABLES represent only 9% of the volume and the $NAME 3%.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1280" height="720" src="http://100.96.1.66:3001/app/uploads/2020/07/Diapositive15.png" alt="" class="wp-image-2466" srcset="http://100.96.1.66:3001/app/uploads/2020/07/Diapositive15.png 1280w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive15-300x169.png 300w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive15-1024x576.png 1024w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive15-768x432.png 768w" sizes="(max-width: 1280px) 100vw, 1280px" /></figure></div>



<p>If we look at the Decentraland market in terms of the number of sales, the arrival of $NAME on the market fundamentally changed the morphology of the market. These reduced value assets represent a very large share of the market in terms of sales quantity.</p>



<p>The high price and scarcity of $LAND explains this difference between the 88% of USD Transferred and only 5% of the volume of Sales.</p>



<p>Despite a predominance of $WEARABLES in the middle of the period, we observe a progressive slowdown of this type of asset in favor of $NAME.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1280" height="720" src="http://100.96.1.66:3001/app/uploads/2020/07/Diapositive16.png" alt="" class="wp-image-2467" srcset="http://100.96.1.66:3001/app/uploads/2020/07/Diapositive16.png 1280w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive16-300x169.png 300w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive16-1024x576.png 1024w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive16-768x432.png 768w" sizes="(max-width: 1280px) 100vw, 1280px" /></figure></div>



<h2>The other analysis on the First Semester 2020</h2>



<p><strong><a href="https://nonfungible.com/news/analysis/nonfungible-first-semester-2020-performance" target="_blank" rel="noreferrer noopener">Global NFT Industry Performance vs. First Semester 2019 (Transactions, USD, Active Addresses)</a></strong></p>



<p><strong><strong><a href="https://nonfungible.com/news/analysis/nonfungible-first-semester-2020-segmented-performance-analysis" target="_blank" rel="noreferrer noopener">Performance &amp; Distribution per segment (Art, Real Estate, Gaming, Collectibles, Domain Names, Trading Card Games)</a></strong></strong></p>



<p><strong><a href="https://nonfungible.com/news/analysis/tcg-domain-names-art-s1-2020" target="_blank" rel="noreferrer noopener">Focus on Art, Domain Names &amp; Trading Card Games (Distribution per project on each segment)</a></strong></p>


The fourth and final analysis on the first half of 2020 markets and dapp statistics. This time, in the Virtual Real Estate or Metaverse segments.

S1 2020 – Virtual Real Estate


<p>Although still in the minority, these 3 segments represent significant growth potential for the non-fungible token industry. In this article, we will analyze the distribution of activity between the main projects in these segments.</p>



<h2>Art Marketplaces</h2>



<p>The infographic below presents the distribution of activity between the 3 main Art Marketplaces of the ecosystem:</p>



<ul><li><a href="https://nonfungible.com/market-tracker/superrare">SuperRare</a></li><li><a href="https://nonfungible.com/market-tracker/knownorigin" target="_blank" rel="noreferrer noopener">Known Origin</a></li><li><a href="https://nonfungible.com/market-tracker/makersplace">MakersPlace</a></li></ul>



<p>This infographic focuses on the 3 <em>traditional </em>performance indicators:</p>



<ul><li>Active Addresses</li><li>USD Transferred</li><li>Transactions Volume</li></ul>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1280" height="720" src="http://100.96.1.66:3001/app/uploads/2020/07/Diapositive14.png" alt="" class="wp-image-2457" srcset="http://100.96.1.66:3001/app/uploads/2020/07/Diapositive14.png 1280w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive14-300x169.png 300w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive14-1024x576.png 1024w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive14-768x432.png 768w" sizes="(max-width: 1280px) 100vw, 1280px" /></figure></div>



<p>Note first that no absolute leader stands out. MakersPlace dominates the segment from the point of view of Active Addresses and transaction volume, SuperRare dominates very largely from the point of view of USD traded, and KnownOrigin maintains itself on the 3 KPIs, with between 15% and 20% of the activity.</p>



<p>The data suggest that the average price of works traded on SuperRare is much higher than on MakersPlace. Are we witnessing the emergence of two positions within Blockchain Art, around affordable works and works of art curated for higher value?</p>



<h2>Tradable Card Games</h2>



<p>The three major players in the TCG segment are:</p>



<ul><li><a href="https://nonfungible.com/market-tracker/godsunchained" target="_blank" rel="noreferrer noopener">Gods Unchain</a><a href="https://nonfungible.com/market-tracker/godsunchained">ed</a></li><li><a href="https://nonfungible.com/market-tracker/cryptospells" target="_blank" rel="noreferrer noopener">CryptoSpells</a></li><li><a href="https://nonfungible.com/market-tracker/etherlegends" target="_blank" rel="noreferrer noopener">EtherLegends</a></li></ul>



<p>Not surprisingly, <a href="https://nonfungible.com/market/history/godsunchained" target="_blank" rel="noreferrer noopener">Gods Unchained</a> largely dominates the segment with 75% to 90% of the activity. <a href="https://nonfungible.com/market/history/cryptospells" target="_blank" rel="noreferrer noopener">CryptoSpells</a> is positioned as a challenger to watch, especially from the point of view of the size of the community (22% market share over the period)</p>



<p>The secondary market for <a href="https://nonfungible.com/market-tracker/godsunchained" target="_blank" rel="noreferrer noopener">Gods Unchained</a> cards continues to grow, proof of the obvious interest of players for the worthy rival of Magic: The Gathering.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1280" height="720" src="http://100.96.1.66:3001/app/uploads/2020/07/Diapositive20.png" alt="" class="wp-image-2458" srcset="http://100.96.1.66:3001/app/uploads/2020/07/Diapositive20.png 1280w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive20-300x169.png 300w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive20-1024x576.png 1024w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive20-768x432.png 768w" sizes="(max-width: 1280px) 100vw, 1280px" /></figure></div>



<h2>Domain Names</h2>



<p>To date, only two players occupy the Domain Names segment:</p>



<ul><li><a href="https://nonfungible.com/market-tracker/ethereumnameservice" target="_blank" rel="noreferrer noopener">Ethereum Name Service (ENS)</a></li><li><a href="https://nonfungible.com/market-tracker/unstoppabledomains" target="_blank" rel="noreferrer noopener">Unstoppable Domains</a></li></ul>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1280" height="720" src="http://100.96.1.66:3001/app/uploads/2020/07/Diapositive17-1.png" alt="" class="wp-image-2495" srcset="http://100.96.1.66:3001/app/uploads/2020/07/Diapositive17-1.png 1280w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive17-1-300x169.png 300w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive17-1-1024x576.png 1024w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive17-1-768x432.png 768w" sizes="(max-width: 1280px) 100vw, 1280px" /></figure></div>



<p><a href="https://nonfungible.com/market-tracker/unstoppabledomains" target="_blank" rel="noreferrer noopener">Unstoppable Domains</a> is undoubtedly a tiny challenger face to the monopoly of <a href="https://nonfungible.com/market-tracker/ethereumnameservice" target="_blank" rel="noreferrer noopener">Ethereum Name Service</a>, with 4% of the USD traded against 96% for ENS.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1280" height="720" src="http://100.96.1.66:3001/app/uploads/2020/07/Diapositive18-1.png" alt="" class="wp-image-2496" srcset="http://100.96.1.66:3001/app/uploads/2020/07/Diapositive18-1.png 1280w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive18-1-300x169.png 300w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive18-1-1024x576.png 1024w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive18-1-768x432.png 768w" sizes="(max-width: 1280px) 100vw, 1280px" /></figure></div>



<p>This monopoly is much less visible in terms of the size of the community. <a href="https://nonfungible.com/market-tracker/unstoppabledomains" target="_blank" rel="noreferrer noopener">Unstoppable Domains</a> experienced activity peaks over the period with more than 50% of the segment&#8217;s active addresses in certain weeks of the first quarter.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1280" height="720" src="http://100.96.1.66:3001/app/uploads/2020/07/Diapositive19-1.png" alt="" class="wp-image-2497" srcset="http://100.96.1.66:3001/app/uploads/2020/07/Diapositive19-1.png 1280w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive19-1-300x169.png 300w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive19-1-1024x576.png 1024w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive19-1-768x432.png 768w" sizes="(max-width: 1280px) 100vw, 1280px" /></figure></div>



<p>We do not observe a clear trend in terms of transaction volumes between the two players. </p>



<p>Though it is still interesting to notice that Unstoppable Domains has the lead on this metric with 51% of the overall transactions. </p>



<h2>Conclusions</h2>



<p>These three segments have very different dynamics, but note that there is almost always a precursor project that still brings growth, accompanied by one or more challengers.</p>



<p>What will the second semester hold for us? Arrival of new challengers? Strengthening the place of leaders?</p>



<h2>The other analyzes on the First Semester 2020 coming soon!</h2>



<p><strong><a href="https://nonfungible.com/news/analysis/nonfungible-first-semester-2020-performance" target="_blank" rel="noreferrer noopener">Global NFT Industry Performance vs. First Semester 2019 (Transactions, USD, Active Addresses)</a></strong></p>



<p><strong><strong><a href="https://nonfungible.com/news/analysis/nonfungible-first-semester-2020-segmented-performance-analysis" target="_blank" rel="noreferrer noopener">Performance &amp; Distribution per segment (Art, Real Estate, Gaming, Collectibles, Domain Names, Trading Card Games)</a></strong></strong></p>



<p><strong><strong><strong>Virtual Real Estate Market Distribution (Decentraland, CryptoVoxels, The Sandbox,&#8230;)</strong></strong></strong></p>


An analysis of NFT markets in the first half of 2020 offers a more precise focus on the Art, Trading Card Games and Domain Names segments.

S1 2020 – Art, Trading Card Games, Domain Names


<p>Following our first article on the <a href="https://nonfungible.com/news/analysis/nonfungible-first-semester-2020-performance" target="_blank" rel="noreferrer noopener">global performance of the NFT ecosystem in the first half of 2020</a>, today we invite you to go into more detail and observe the performance of each of the NFT industry segments.</p>



<p>The analyzes presented below are based on more than 700 NFT projects divided into 6 major segments.</p>



<p>The 6 segments analyzed are as follows:</p>



<ul><li>Gaming</li><li>Collectibles</li><li>Domain Names</li><li>Trading Card Games (TCG)</li><li>Real Estate (&amp; Metaverses)</li><li>Art</li></ul>



<h2>Performance per segment &#8211; Transaction Volumes</h2>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1280" height="720" src="http://100.96.1.66:3001/app/uploads/2020/07/Diapositive9.png" alt="" class="wp-image-2452" srcset="http://100.96.1.66:3001/app/uploads/2020/07/Diapositive9.png 1280w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive9-300x169.png 300w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive9-1024x576.png 1024w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive9-768x432.png 768w" sizes="(max-width: 1280px) 100vw, 1280px" /><figcaption>Non-fungible tokens &#8211; Global Performance per segment &#8211; S1 2020 &#8211; Transactions volume</figcaption></figure></div>



<p>In the first half of 2020, Blockchain Gaming still represents the largest part of the ecosystem (41%), before Collectibles (29%) Domain Names, TCG, Real Estate and Art occupy the remaining 30%.</p>



<p>However, we observe that over time, the share of gaming seems to be decreasing, and that other segments such as art or collectibles are experiencing good growth in this first half.</p>



<h2>Performance per segment &#8211; Transaction Volume</h2>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1280" height="720" src="http://100.96.1.66:3001/app/uploads/2020/07/Diapositive10.png" alt="" class="wp-image-2453" srcset="http://100.96.1.66:3001/app/uploads/2020/07/Diapositive10.png 1280w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive10-300x169.png 300w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive10-1024x576.png 1024w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive10-768x432.png 768w" sizes="(max-width: 1280px) 100vw, 1280px" /><figcaption>Non-fungible tokens &#8211; Global Performance per segment &#8211; S1 2020 &#8211; Active Addresses</figcaption></figure></div>



<p>The distribution of communities is quite different from the distribution by volume of transactions (see previous chart).</p>



<p>Gaming remains the majority but Domain Names and Real Estate occupy a much more important place than on the previous chart.</p>



<p>Domain Names and Art also demonstrated good growth over the period, confirming the relevance of the use case for the end user.</p>



<p>We believe that the distribution of the number of addresses by segment is currently one of the best indicators for understanding the dynamics that drive the growth of the ecosystem.</p>



<h2>Performance per segment &#8211; USD Transferred</h2>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1280" height="720" src="http://100.96.1.66:3001/app/uploads/2020/07/Diapositive11.png" alt="" class="wp-image-2454" srcset="http://100.96.1.66:3001/app/uploads/2020/07/Diapositive11.png 1280w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive11-300x169.png 300w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive11-1024x576.png 1024w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive11-768x432.png 768w" sizes="(max-width: 1280px) 100vw, 1280px" /><figcaption>Non-fungible tokens &#8211; Global Performance per segment &#8211; S1 2020 &#8211; USD Transferred</figcaption></figure></div>



<p>From the point of view of the USD transferred, Art was the big surprise of the period, with 31% of activity, and exceptional growth over the last few months. Real Estate remains the main segment, mainly driven by the secondary market of <a href="https://nonfungible.com/market-tracker/decentraland" target="_blank" rel="noreferrer noopener">Decentraland</a>, the successful presales of <a href="https://nonfungible.com/market-tracker/thesandbox" target="_blank" rel="noreferrer noopener">The Sandbox</a>, and quickly growing interest in <a href="https://nonfungible.com/market-tracker/somniumspace" target="_blank" rel="noreferrer noopener">Somnium Space</a>.</p>



<h2>The other analyzes on the First Semester 2020</h2>



<p><strong><a href="https://nonfungible.com/news/analysis/nonfungible-first-semester-2020-performance" target="_blank" rel="noreferrer noopener">Global NFT Industry Performance vs. First Semester 2019 (Transactions, USD, Active Addresses)</a></strong></p>



<p><strong><a href="https://nonfungible.com/news/analysis/tcg-domain-names-art-s1-2020" target="_blank" rel="noreferrer noopener">Focus on Art, Domain Names &amp; Trading Card Games (Distribution per project on each segment)</a></strong></p>



<p><strong><a href="https://nonfungible.com/news/analysis/virtual-real-estate-s1-2020" target="_blank" rel="noreferrer noopener">Virtual Real Estate Market Distribution (Decentraland, CryptoVoxels, The Sandbox,&#8230;)</a></strong></p>


The NFT ecosystem has seen interesting activity between different segments (gaming, collectibles, art, domains, real estate). Here's our segmented analysis of the S1 2020.

S1 2020 – NFT Ecosystem Segmented Performance


<p>Here we are! July is already there!</p>



<p>The first semester of 2020 is over, the time has come to look at the performance of the NFT ecosystem for this first part of the year!</p>



<p>We have decided to compare this first semester 2020 with the same period in 2019, the second semester possibly bringing a bias with the summer and the end of the year irregular activity.</p>



<p>This article is the first of a series of 4 that will be published this month. A new one will be published every Tuesday on our blog. The links are indicated at the end of the article.</p>



<h2>Global Performance</h2>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1280" height="720" src="http://100.96.1.66:3001/app/uploads/2020/07/Diapositive5-1.png" alt="" class="wp-image-2476" srcset="http://100.96.1.66:3001/app/uploads/2020/07/Diapositive5-1.png 1280w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive5-1-300x169.png 300w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive5-1-1024x576.png 1024w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive5-1-768x432.png 768w" sizes="(max-width: 1280px) 100vw, 1280px" /><figcaption>Non-fungible tokens &#8211; Global Performance &#8211; S1 2020</figcaption></figure></div>



<p>At first glance, the overall performance over the first half of 2020 is mitigate. There is an overall stabilization in the number of active addresses, almost 78,000 NFT users.</p>



<p>The overall transaction volume over the first 6 months of the year fell by almost 15%, which we put on the account of technological developments and the proliferation of side-chains encouraging &#8220;non-essential&#8221; transactions to be done off-chain to guarantee a smooth UX.</p>



<p>The volume of dollars exchanged has soared to more than $230 million, for an increase of almost 300% compared to S1 2019. We believe that the pre-sales (especially those of The Sandbox), the introduction of new assets on marketplaces and the gradual development of the Art Blockchain market are important vectors of this growth.</p>



<h2>Transactions Volume Performance</h2>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1280" height="720" src="http://100.96.1.66:3001/app/uploads/2020/07/Diapositive6-1.png" alt="" class="wp-image-2477" srcset="http://100.96.1.66:3001/app/uploads/2020/07/Diapositive6-1.png 1280w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive6-1-300x169.png 300w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive6-1-1024x576.png 1024w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive6-1-768x432.png 768w" sizes="(max-width: 1280px) 100vw, 1280px" /><figcaption>NFT Market Performance &#8211; Transactions Volume &#8211; 1st Semester 2020 VS. 1s Semester 2019</figcaption></figure></div>



<p>The difference in volume between S1 2019 and 2020 can mainly be seen on the relative peak in March 2019 and the fairly significant drop in May / June 2020.</p>



<h2>USD Transfered Performance</h2>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1280" height="720" src="http://100.96.1.66:3001/app/uploads/2020/07/Diapositive7-2.png" alt="" class="wp-image-2478" srcset="http://100.96.1.66:3001/app/uploads/2020/07/Diapositive7-2.png 1280w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive7-2-300x169.png 300w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive7-2-1024x576.png 1024w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive7-2-768x432.png 768w" sizes="(max-width: 1280px) 100vw, 1280px" /><figcaption>NFT Market Performance &#8211; USD Transfered &#8211; 1st Semester 2020 VS. 1s Semester 2019</figcaption></figure></div>



<p>The USD Transfered Volume in January and February 2020 widened the gap with the previous year. With a peak at more than $85 million traded in February (mainly from the primary market), we observe that the overall trend goes back down in April 2020 to fall below the monthly volumes traded in 2019.</p>



<h2>Active Addresses Performance</h2>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1280" height="720" src="http://100.96.1.66:3001/app/uploads/2020/07/Diapositive8-1.png" alt="" class="wp-image-2479" srcset="http://100.96.1.66:3001/app/uploads/2020/07/Diapositive8-1.png 1280w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive8-1-300x169.png 300w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive8-1-1024x576.png 1024w, http://100.96.1.66:3001/app/uploads/2020/07/Diapositive8-1-768x432.png 768w" sizes="(max-width: 1280px) 100vw, 1280px" /><figcaption>NFT Market Performance &#8211; Active Addresses &#8211; 1st Semester 2020 VS. 1s Semester 2019</figcaption></figure></div>



<p>The average curve of active wallets in S1 2020 seems to show that NFT users are generally more active. Even if the total volume of active addresses over the period has not changed much (around 75,000 addresses), there are 15,000 more active addresses in February, 5,000 more in March and just over 20,000 on April.</p>



<h2>The other analyzes on the First Semester 2020</h2>



<ul><li><strong><a href="https://nonfungible.com/news/analysis/nonfungible-first-semester-2020-segmented-performance-analysis" target="_blank" rel="noreferrer noopener">Performance &amp; Distribution per segment (Art, Real Estate, Gaming, Collectibles, Domain Names, Trading Card Games)</a></strong></li><li><strong><a href="https://nonfungible.com/news/analysis/tcg-domain-names-art-s1-2020" target="_blank" rel="noreferrer noopener">Focus on Art, Domain Names &amp; Trading Card Games (Distribution per project on each segment)</a></strong></li><li><strong><a href="https://nonfungible.com/news/analysis/virtual-real-estate-s1-2020" target="_blank" rel="noreferrer noopener">Virtual Real Estate Market Distribution (Decentraland, CryptoVoxels, The Sandbox,&#8230;)</a></strong></li></ul>


The NFT ecosystem in the first half of 2020 has been interesting with the explosion of crypto-art coupled with volatile transaction fees. Here's our analysis of the S1 2020.

S1 2020 – NFT Ecosystem Global Performance

Blockchain players are more and more numerous every month! But how often do they play? Are they regular or casual players?

How engaged are blockchain gamers?

Did you buy blockchain video game assets / NFTs this year? Wondering how has their value has evolved? Which assets are likely to continue to gain value?

Which NFTs have consistently gained value in 2019?


<p>We propose a complete analysis of this first half of 2019 in the universe of non-fungible tokens. This half-year situation aims to identify new trends, to measure the progress of the industry as a whole, but also to identify potential new players.</p>



<h2>NFT Dataset analyzed</h2>



<p>In order to build this analysis, we tracked the first 6 months of 2019, exactly 179 projects using the standard ERC-721 (so-called &#8220;NFT&#8221; projects for non fungible tokens), on the Ethereum Blockchain.</p>



<p>The ERC-721 standard and the Ethereum technology are currently the main vector of blockchain gaming development, so the data presented below are a realistic reflection of the state of the art of gaming blockchain, and use non-fungible tokens.</p>



<p>We focused on 3 major indicators that we find relevant to reporting on the overall situation of the industry:</p>



<ul><li>Weekly active addresses (<strong><em>How many people?</em></strong>)</li><li>Weekly volume of interactions with the smart contract (<strong><em>How active are they?</em></strong>)</li><li>Weekly volume of USD traded (<strong><em>How much are they investing?</em></strong>)</li></ul>



<h2>2018 VS. 2019 global trends</h2>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" width="284" height="194" src="http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-active-addresses.png" alt="" class="wp-image-1497"/></figure></div>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" width="281" height="221" src="http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-transaction-volume.png" alt="" class="wp-image-1498"/></figure></div>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" width="334" height="221" src="http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-usd-traded.png" alt="" class="wp-image-1499" srcset="http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-usd-traded.png 334w, http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-usd-traded-300x199.png 300w" sizes="(max-width: 334px) 100vw, 334px" /></figure></div>



<p>The average number of transactions per week increased by 11% between 2018 and 2019, for a 76% increase in the average number of active addresses.</p>



<p>These indicators are clearly a sign of community development and the crypto-gaming industry.</p>



<p>Conversely, the average amount traded per week fell significantly over 18 months, from nearly $7 million traded per week to less than $900,000. We explain this evolution through the proliferation of primary markets and sales. tokens in the first half of 2018 (notably <a href="https://nonfungible.com/market-tracker/decentraland" target="_blank" rel="noreferrer noopener">Decentraland</a>), then the gradual decline in NFT speculation between 2018 and 2019.</p>



<p>In a nutshell: 2018 was the year of acquisition of the assets, 2019 is the year of their use.</p>



<h2>Key Indicator #1 &#8211; Active addresses</h2>



<p>We are starting the analysis with active addresses, because we consider that the volume of the user base and the size of the gamer community is to date the best indicator to measure the health of the ecosystem.</p>



<p>The average trend in this first half of 2019 is around 10,000 active addresses per week.</p>



<p><a href="https://nonfungible.com/market-tracker/mycryptoheroes" target="_blank" rel="noreferrer noopener">MyCryptoHeroes</a> had an excellent start to the year with peaks of more than 8,000 players per week before returning to a normative level of around 2,500 players / week, note that their community has been growing steadily since February.</p>



<p>February was the least active month for the industry with a total of 8,000 players / week.</p>



<p>The community of <a href="https://nonfungible.com/news/game/discover-0xuniverse-now-on-nonfungible-com" target="_blank" rel="noreferrer noopener">0xUniverse</a> has also been growing steadily since the beginning of the year, from around 600 active addresses / week to more than 2,000 at the end of June.</p>



<p><a href="https://nonfungible.com/news/collectible/what-is-the-future-of-cryptokitties" target="_blank" rel="noreferrer noopener">CryptoKitties</a> remains a major player but has been largely overtaken by its two major competitors: MyCryptoHeroes and 0xUniverse.</p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" width="980" height="660" src="http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-weekly-active-addresses.png" alt="" class="wp-image-1500" srcset="http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-weekly-active-addresses.png 980w, http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-weekly-active-addresses-300x202.png 300w, http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-weekly-active-addresses-768x517.png 768w" sizes="(max-width: 980px) 100vw, 980px" /></figure></div>



<h2>Key Indicator #2 &#8211; USD traded</h2>



<p>Trends are more difficult to read when analyzing dollar volumes traded. Some peaks can be explained quite easily. The <a href="https://opensea.io" target="_blank" rel="noreferrer noopener">OpenSea</a> peaks:</p>



<ul><li>The peak of May can be explained by the sale of Formula 1-1-1 by <a href="https://www.f1deltatime.com/" target="_blank" rel="noreferrer noopener">F1 Delta Time</a> for 415 ETH.</li><li>The sale of <a href="https://twitter.com/neondistrictRPG/status/1117936350978813952" target="_blank" rel="noreferrer noopener">Neon District’s Final Baus for 141 ETH</a></li></ul>



<p>The peak <a href="https://nonfungible.com/market/history/axieinfinity" target="_blank" rel="noreferrer noopener">Axie Infinity</a> of January is explained by the Land Sale organized earlier this year.</p>



<p>We notice that the LAND resale market on <a href="https://decentraland.org/" target="_blank" rel="noreferrer noopener">Decentraland</a> has lost a lot of speed, the average USD traded per week is very close to that of CryptoKitties, OpenSea, <a href="https://nonfungible.com/market-tracker/godsunchained" target="_blank" rel="noreferrer noopener">Gods Unchained</a> or MyCryptoHeroes.</p>



<p>It is surprising to note that MyCryptoHeroes had the largest volume of dollars traded during the &#8220;hollow&#8221; period in terms of active addresses, in February.</p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" width="1024" height="609" src="http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-weekly-usd-traded-1024x609.png" alt="" class="wp-image-1501" srcset="http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-weekly-usd-traded-1024x609.png 1024w, http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-weekly-usd-traded-300x178.png 300w, http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-weekly-usd-traded-768x457.png 768w, http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-weekly-usd-traded.png 1085w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure></div>



<h2>Key Indicator #3 &#8211; Transaction volume</h2>



<p>We observe significant volatility in transaction volumes over the period, with regular fluctuations between 100,000 and 200,000 transactions per week.</p>



<p>These fluctuations are measured on regular cycles ranging from 3 to 4 weeks.</p>



<p>Just like the USD traded indicator, February was particularly quiet in terms of trading volume.</p>



<p><strong>By project:</strong></p>



<ul><li>The volume of 0xUniverse has increased throughout the year, from 11,000 to 29,000 transactions per week on average</li><li>CryptoKitties had a steady decline over 6 months from an average of 72,000 to about 37,000 transactions a week</li><li>MyCryptoHeroes, CryptoKitties and 0xUniverse account for a little over 65% of all the transactions of the 178 projects analyzed, confirming the dominant position of these games.</li></ul>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" width="1024" height="625" src="http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-weekly-tx-1024x625.png" alt="" class="wp-image-1502" srcset="http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-weekly-tx-1024x625.png 1024w, http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-weekly-tx-300x183.png 300w, http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-weekly-tx-768x469.png 768w, http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-weekly-tx.png 1207w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure></div>



<h2>Crossed analysis #1 &#8211; Transactions VS. USD traded</h2>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" width="812" height="612" src="http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-tx-vs-usd.png" alt="" class="wp-image-1503" srcset="http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-tx-vs-usd.png 812w, http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-tx-vs-usd-300x226.png 300w, http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-tx-vs-usd-768x579.png 768w" sizes="(max-width: 812px) 100vw, 812px" /></figure></div>



<p>Correlation Coefficient of the two variables Volume of Transactions / USD traded:</p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" width="708" height="106" src="http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-tx-vs-usd-correlation.png" alt="" class="wp-image-1504" srcset="http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-tx-vs-usd-correlation.png 708w, http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-tx-vs-usd-correlation-300x45.png 300w" sizes="(max-width: 708px) 100vw, 708px" /><figcaption><strong>MIDDLE</strong></figcaption></figure></div>



<p><strong><em>Reminder</em></strong><em>: the correlation coefficient is a number between +1 and −1 calculated so as to represent the linear interdependence of two variables or sets of data. A coefficient close to 1 indicates a strong positive correlation, close to -1 a strong negative correlation. A coefficient close to 0 indicates a lack of correlation.</em></p>



<h2>Crossed analysis #2 &#8211; Transactions VS. Active Addresses</h2>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" width="812" height="621" src="http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-tx-vs-active-wallets.png" alt="" class="wp-image-1505" srcset="http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-tx-vs-active-wallets.png 812w, http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-tx-vs-active-wallets-300x229.png 300w, http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-tx-vs-active-wallets-768x587.png 768w" sizes="(max-width: 812px) 100vw, 812px" /></figure></div>



<p>Correlation Coefficient of the two variables Volume of Transactions / Active Addresses:</p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" width="695" height="93" src="http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-tx-vs-active-wallets-correlation.png" alt="" class="wp-image-1506" srcset="http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-tx-vs-active-wallets-correlation.png 695w, http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-tx-vs-active-wallets-correlation-300x40.png 300w" sizes="(max-width: 695px) 100vw, 695px" /><figcaption><strong>HIGH</strong></figcaption></figure></div>



<p><strong><em>Reminder</em></strong><em>: the correlation coefficient is a number between +1 and −1 calculated so as to represent the linear interdependence of two variables or sets of data. A coefficient close to 1 indicates a strong positive correlation, close to -1 a strong negative correlation. A coefficient close to 0 indicates a lack of correlation.</em></p>



<h2>Crossed analysis #3 &#8211; USD traded VS. Active Addresses</h2>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" width="820" height="637" src="http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-usd-vs-active-wallets.png" alt="" class="wp-image-1507" srcset="http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-usd-vs-active-wallets.png 820w, http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-usd-vs-active-wallets-300x233.png 300w, http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-usd-vs-active-wallets-768x597.png 768w" sizes="(max-width: 820px) 100vw, 820px" /></figure></div>



<p>Correlation Coefficient of the two variables USD traded / Active Addresses:&nbsp;</p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" width="683" height="103" src="http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-usd-vs-active-wallets-correlation.png" alt="" class="wp-image-1508" srcset="http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-usd-vs-active-wallets-correlation.png 683w, http://100.96.1.66:3001/app/uploads/2020/05/nft-2019-usd-vs-active-wallets-correlation-300x45.png 300w" sizes="(max-width: 683px) 100vw, 683px" /><figcaption><strong>LOW</strong></figcaption></figure></div>



<p><strong><em>Reminder</em></strong><em>: the correlation coefficient is a number between +1 and −1 calculated so as to represent the linear interdependence of two variables or sets of data. A coefficient close to 1 indicates a strong positive correlation, close to -1 a strong negative correlation. A coefficient close to 0 indicates a lack of correlation.</em></p>



<h2>Conclusions</h2>



<p>We have identified a large number of trends during this analysis, here is a summary of the key elements of this study:</p>



<ul><li>2018 was the year of acquisition of the assets, 2019 is the year of their use, with + 78% weekly active addresses and -35% of weekly USD traded</li><li>MyCryptoHeroes remains the most played blockchain game on the Ethereum Blockchain</li><li>CryptoKitties loses speed on all indicators even if it remains a key player after already 2 years of existence</li><li>0xUniverse is clearly positioned as one of the 3 flagship projects of 2019 with MyCryptoHeroes and CryptoKitties, but with statistics steadily increasing throughout the period</li></ul>


What were the trends for the first six months of 2019? How did the blockchain video game market grow? Has it followed 2018 trends?

S1 2019: Overview of the blockchain gaming markets


<p>[08.10.2019 UPDATE: BlockchainCuties data added to the analysis]</p>



<p>We proposed an initial analysis of NFT communities few weeks ago, focusing on the activity of non-fungible token traders. In other words, the first analysis focused exclusively on the addresses (users) who bought or sold an asset specific to these projects. This indicator has already revealed many things about community silos and the behavior of buyers from one project to another. We invite you to find the analysis on the NFT trading communities at this address : <a href="https://nonfungible.com/news/analysis/non-fungible-tokens-communities-analysis-2019" target="_blank" rel="noreferrer noopener">One global or several tiny NFT communities? Traders version</a></p>



<p>However, this first analysis was not enough to show the whole community around non-fungible tokens. Remember, buying or selling an asset is only ONE of many potential use cases. We believe today that this speculative trend is an obvious legacy of the cryptocurrency ecosystem, but it does not represent the only growth driver of the crypto-gaming / NFT ecosystem.</p>



<p>Today, we want to offer you a more complete analysis, covering the same 13 projects, but this time integrating ALL interactions with the smart contracts.</p>



<p>In other words:</p>



<ul><li>1st analysis (traders): only transactions corresponding to the purchase or sale of an asset</li><li>This analysis (gamers): all interactions with the game, including purchases / sales, but also in-game (on-chain) actions, such as redeeming your experience points in Axie Infinity.&nbsp;</li></ul>



<h2>Our methodology</h2>



<p>The methodology is globally the same as for the traders analysis, we have aggregated and analyzed over 3.5 million interactions. The period analyzed is the same: from January 1st to June 30th 2019.</p>



<p>The following 14 projects were analyzed:</p>



<ul><li><a href="https://nonfungible.com/market-tracker/0xuniverse" target="_blank" rel="noreferrer noopener">0xUniverse</a></li><li><a href="https://nonfungible.com/market-tracker/axieinfinity" target="_blank" rel="noreferrer noopener">Axie Infinity</a></li><li><a href="https://nonfungible.com/market-tracker/blockchaincuties" target="_blank" rel="noreferrer noopener">Blockchain Cuties</a></li><li><a href="https://nonfungible.com/market-tracker/chainbreakers" target="_blank" rel="noreferrer noopener">Chainbreakers</a></li><li><a href="https://nonfungible.com/market-tracker/cryptopunks" target="_blank" rel="noreferrer noopener">CryptoPunks</a></li><li><a href="https://nonfungible.com/market-tracker/chibifighters" target="_blank" rel="noreferrer noopener">Chibifighters</a></li><li><a href="https://nonfungible.com/market-tracker/cryptokitties" target="_blank" rel="noreferrer noopener">CryptoKitties</a></li><li><a href="https://nonfungible.com/market-tracker/decentraland" target="_blank" rel="noreferrer noopener">Decentraland</a></li><li><a href="https://nonfungible.com/market-tracker/ethermon" target="_blank" rel="noreferrer noopener">Etheremon</a></li><li><a href="https://nonfungible.com/market-tracker/etherbots" target="_blank" rel="noreferrer noopener">Etherbots</a></li><li><a href="https://nonfungible.com/market-tracker/neondistrict" target="_blank" rel="noreferrer noopener">Neon District</a></li><li><a href="https://nonfungible.com/market-tracker/mlbchampions" target="_blank" rel="noreferrer noopener">MLB Champions</a></li><li><a href="https://nonfungible.com/market-tracker/mycryptoheroes" target="_blank" rel="noreferrer noopener">My Crypto Heroes</a></li><li><a href="https://nonfungible.com/market-tracker/megacryptopolis" target="_blank" rel="noreferrer noopener">MegaCryptoPolis</a></li></ul>



<p><strong>Our analysis focused on these different aspects:</strong></p>



<ol><li>Adhesion rates between crypto-games (number of players in common)</li><li>Adhesion rates between crypto-games (percentage of players in common)</li><li>Identification and prioritization of projects according to their isolation rate (percentage of players not playing any other blockchain game)</li><li>Number and percentage of players according to the number of blockchain games in which they are active (from 1 to 14)</li></ol>



<h2>Adhesion rates between crypto-games (number of players)&nbsp;</h2>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" width="988" height="880" src="http://100.96.1.66:3001/app/uploads/2020/05/report-active-wallets-cross-pollination.png" alt="" class="wp-image-1488" srcset="http://100.96.1.66:3001/app/uploads/2020/05/report-active-wallets-cross-pollination.png 988w, http://100.96.1.66:3001/app/uploads/2020/05/report-active-wallets-cross-pollination-300x267.png 300w, http://100.96.1.66:3001/app/uploads/2020/05/report-active-wallets-cross-pollination-768x684.png 768w" sizes="(max-width: 988px) 100vw, 988px" /></figure></div>



<p>First of all, it is important to remember that this view by &#8220;Number of players&#8221; can be misleading because a small community necessarily has a small area of adherence with other communities. Thus, <a href="https://nonfungible.com/market-tracker/cryptopunks" target="_blank" rel="noreferrer noopener">CryptoPunks </a>with a community of 215 people appears in red with very few players in common with other projects.</p>



<p>This phenomenon is purely mechanical and related to the size of its community, it is for this reason that we recommend reading this first data in the light of the second table showing the distribution of players in percentage.</p>



<h2>Adhesion rates between crypto-games (% of players)</h2>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" width="1024" height="849" src="http://100.96.1.66:3001/app/uploads/2020/05/report-active-wallets-cross-pollination-percent-1024x849.png" alt="" class="wp-image-1489" srcset="http://100.96.1.66:3001/app/uploads/2020/05/report-active-wallets-cross-pollination-percent-1024x849.png 1024w, http://100.96.1.66:3001/app/uploads/2020/05/report-active-wallets-cross-pollination-percent-300x249.png 300w, http://100.96.1.66:3001/app/uploads/2020/05/report-active-wallets-cross-pollination-percent-768x637.png 768w, http://100.96.1.66:3001/app/uploads/2020/05/report-active-wallets-cross-pollination-percent.png 1063w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure></div>



<h2>Community isolation rate</h2>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" width="1024" height="576" src="http://100.96.1.66:3001/app/uploads/2020/05/report-community-isolation-rate-1024x576.png" alt="" class="wp-image-1490" srcset="http://100.96.1.66:3001/app/uploads/2020/05/report-community-isolation-rate-1024x576.png 1024w, http://100.96.1.66:3001/app/uploads/2020/05/report-community-isolation-rate-300x169.png 300w, http://100.96.1.66:3001/app/uploads/2020/05/report-community-isolation-rate-768x432.png 768w, http://100.96.1.66:3001/app/uploads/2020/05/report-community-isolation-rate.png 1096w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure></div>



<p><a href="https://nonfungible.com/market-tracker/mycryptoheroes" target="_blank" rel="noreferrer noopener">MyCryptoHeroes </a>is by far the most &#8220;isolated&#8221; project, with 93% of players not playing a single other blockchain game.</p>



<p>On the contrary, <a href="https://nonfungible.com/market-tracker/neondistrict" target="_blank" rel="noreferrer noopener">Neon District</a> is the game sharing the most players with other communities, only 39.58% of these players did not go to see other games on the period.</p>



<p>On average, 61.65% of players are loyal to one game.</p>



<p>It should be noted that the 3 projects being the most &#8220;isolated&#8221; have the largest communities (&gt; 5,000 players). From this we conclude that these projects have been able to reach audiences far removed from the NFT ecosystem, which may explain this low porosity (apparently) with other projects.</p>



<p>The isolation rate is an indicator to consider with caution because this &#8220;relative isolation&#8221; can be a reflection of a very healthy development of the project towards new audiences.</p>



<h2>Distribution of players according to the number of projects played</h2>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" width="916" height="552" src="http://100.96.1.66:3001/app/uploads/2020/05/report-player-distribution.png" alt="" class="wp-image-1491" srcset="http://100.96.1.66:3001/app/uploads/2020/05/report-player-distribution.png 916w, http://100.96.1.66:3001/app/uploads/2020/05/report-player-distribution-300x181.png 300w, http://100.96.1.66:3001/app/uploads/2020/05/report-player-distribution-768x463.png 768w" sizes="(max-width: 916px) 100vw, 916px" /></figure></div>



<p>We have identified <strong>44,075 unique active addresses across all 14 projects in the first 6 months of 2019</strong>. This statistic does not cover all players in ALL NFT projects, nor does it cover projects using the standard ERC-1155 (Enjin).</p>



<p>97.01% of the total community played to 1 or 2 games. This trend is slightly more pronounced for players than for traders (96%). This proves that the activity of traders is closely linked to that of gamers. Traders identifying trends, they follow the projects with a strong user base, guaranteeing the circulation of purchased assets.</p>



<h2><strong>We estimate the crypto-gaming community in mid-2019 to be around 50,000 players worldwide.</strong></h2>



<p><a href="https://nonfungible.com/market-tracker/mycryptoheroes" target="_blank" rel="noreferrer noopener">MyCryptoHeroes </a>has the highest isolation rate, related to two reasons in our opinion:</p>



<ul><li>the project is much more established on the Asian market than the western one, the opposite of the other project</li><li>the project seduced a new audience, who did not come to &#8220;discover the NFT ecosystem&#8221; but only play <a href="https://nonfungible.com/market-tracker/mycryptoheroes" target="_blank" rel="noreferrer noopener">MyCryptoHeroes</a></li></ul>



<p>Just like the traders&#8217; analysis, 90.77% of the players only played one blockchain game among the 14 analyzed. This figure rises to 97% of the community if we count addresses that have been active on 1 to 2 blockchain games.</p>


Previously, we analyzed the behaviour of digital assets traders. What about players? Are crypto-players following the trend of digital traders? How mixed are the crypto-gaming communities?

The distribution of players on blockchain gaming


<p>Seen from afar, the NFT ecosystem can look like a large community of blockchain gaming enthusiasts. Thanks to the exclusive data collected by NonFungible.com, we found the answers to the following questions:</p>



<ul><li>Among the major blockchain games, which projects have the largest common marketplace user base?</li><li>Are the notions of &#8220;blockchain game&#8221; or &#8220;non-fungible tokens&#8221; a sufficient common denominator for these communities to merge?</li><li>If you were marketing manager of one of these projects, which other projects should you partner with?</li></ul>



<h2>Our methodology</h2>



<p>Our analysis was based on all asset transactions carried out over the period from January 1st to June 20th 2019 for the 13 most active NFT projects listed on NonFungible.com:</p>



<ul><li><a href="https://nonfungible.com/market-tracker/mlbchampions" target="_blank" rel="noreferrer noopener">MLB Champions</a></li><li><a href="https://nonfungible.com/market-tracker/mycryptoheroes" target="_blank" rel="noreferrer noopener">My Crypto Heroes</a></li><li><a href="https://nonfungible.com/market-tracker/megacryptopolis" target="_blank" rel="noreferrer noopener">MegaCryptoPolis</a></li><li><a href="https://nonfungible.com/market-tracker/ethermon" target="_blank" rel="noreferrer noopener">Etheremon</a></li><li><a href="https://nonfungible.com/market-tracker/cryptokitties" target="_blank" rel="noreferrer noopener">CryptoKitties</a></li><li><a href="https://nonfungible.com/market-tracker/decentraland" target="_blank" rel="noreferrer noopener">Decentraland</a></li><li><a href="https://nonfungible.com/market-tracker/axieinfinity" target="_blank" rel="noreferrer noopener">Axie Infinity</a></li><li><a href="https://nonfungible.com/market-tracker/chainbreakers" target="_blank" rel="noreferrer noopener">Chainbreakers</a></li><li><a href="https://nonfungible.com/market-tracker/0xuniverse" target="_blank" rel="noreferrer noopener">0xUniverse</a></li><li><a href="https://nonfungible.com/market/history/etherbots" target="_blank" rel="noreferrer noopener">Ethe</a><a href="https://nonfungible.com/market-tracker/etherbots">r</a><a href="https://nonfungible.com/market/history/etherbots" target="_blank" rel="noreferrer noopener">bots</a></li><li><a href="https://nonfungible.com/market-tracker/cryptopunks" target="_blank" rel="noreferrer noopener">CryptoPunks</a></li><li><a href="https://nonfungible.com/market-tracker/chibifighters" target="_blank" rel="noreferrer noopener">Chibi Fighters</a></li><li><a href="https://nonfungible.com/market-tracker/neondistrict" target="_blank" rel="noreferrer noopener">NeonDistrict</a></li></ul>



<p>In total, the analysis has been built on more than 750,000 lines of data, highlighting verifiable trends in the first half of 2019.</p>



<p>We deliberately chose to study a limited period of time (and to exclude 2018 data) because trends are evolving extremely fast in the NFT ecosystem, and 2018 was specifically a year of major launches and changes for most of these projects. The data collected for 2019 reflects a greater stability of the ecosystem.</p>



<h2>How to read the results</h2>



<p>We identified the exact number of players and the percentage each community who purchased or sold assets in at least one of the 12 other projects during the period.</p>



<p>To present these results, we have two tables based on percentages of the project’s user base and common number of traders, which requires some explanations in order to be perfectly used.</p>



<h3>Results per percentage</h3>



<ul><li>Horizontal axis (X) &#8211; Analyzed project</li><li>Vertical axis (Y) &#8211; % of project user base active in other projects</li></ul>



<p>In the example below, only 1.29% of CryptoKitties traders also bought or sold MLB Champions assets during the period, and 10.16% of Neon District users also traded MLB Champions.</p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" width="1009" height="259" src="http://100.96.1.66:3001/app/uploads/2020/05/report-result-explainer-1.png" alt="" class="wp-image-1481" srcset="http://100.96.1.66:3001/app/uploads/2020/05/report-result-explainer-1.png 1009w, http://100.96.1.66:3001/app/uploads/2020/05/report-result-explainer-1-300x77.png 300w, http://100.96.1.66:3001/app/uploads/2020/05/report-result-explainer-1-768x197.png 768w" sizes="(max-width: 1009px) 100vw, 1009px" /></figure></div>



<p><strong>Note</strong>: Given the size differences between user bases (CryptoKitties: 13 000 active addresses in the period / Cryptopunks: 176 active addresses), it is normal that the following two percentages are different because of the different community sizes:</p>



<ul><li>0.41% of CryptoKitty users traded CryptoPunks</li><li>30.68% of Cryptopunks&#8217; users traded CryptoKitties</li></ul>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" width="916" height="754" src="http://100.96.1.66:3001/app/uploads/2020/05/report-result-explainer-2.png" alt="" class="wp-image-1482" srcset="http://100.96.1.66:3001/app/uploads/2020/05/report-result-explainer-2.png 916w, http://100.96.1.66:3001/app/uploads/2020/05/report-result-explainer-2-300x247.png 300w, http://100.96.1.66:3001/app/uploads/2020/05/report-result-explainer-2-768x632.png 768w" sizes="(max-width: 916px) 100vw, 916px" /></figure></div>



<p>The color code makes it easy to identify areas of adhesion between projects.</p>



<h3>Results per number of users</h3>



<p>The volume of active addresses per project during these 6 months period is set on the 2nd line and row of the table.</p>



<p>Cf. example below:</p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" width="709" height="584" src="http://100.96.1.66:3001/app/uploads/2020/05/report-result-explainer-3.png" alt="" class="wp-image-1483" srcset="http://100.96.1.66:3001/app/uploads/2020/05/report-result-explainer-3.png 709w, http://100.96.1.66:3001/app/uploads/2020/05/report-result-explainer-3-300x247.png 300w" sizes="(max-width: 709px) 100vw, 709px" /></figure></div>



<h2>The results</h2>



<p>The tables below displays all the common user base for the 13 projects listed above. This corresponds to 132 possible combinations.</p>



<ul><li>The first table displays the results per <strong>NUMBER OF TRADERS</strong></li><li>The second one per <strong>PERCENTAGE OF THE MARKET USER BASE</strong></li></ul>



<h3>Results per number of users</h3>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" width="1024" height="928" src="http://100.96.1.66:3001/app/uploads/2020/05/report-results-trader-cross-polination-1024x928.png" alt="" class="wp-image-1484" srcset="http://100.96.1.66:3001/app/uploads/2020/05/report-results-trader-cross-polination-1024x928.png 1024w, http://100.96.1.66:3001/app/uploads/2020/05/report-results-trader-cross-polination-300x272.png 300w, http://100.96.1.66:3001/app/uploads/2020/05/report-results-trader-cross-polination-768x696.png 768w, http://100.96.1.66:3001/app/uploads/2020/05/report-results-trader-cross-polination.png 1105w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure></div>



<h3>Results per percentage of the project’s user base</h3>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" width="1014" height="840" src="http://100.96.1.66:3001/app/uploads/2020/05/report-results-trader-cross-polination-percent.png" alt="" class="wp-image-1485" srcset="http://100.96.1.66:3001/app/uploads/2020/05/report-results-trader-cross-polination-percent.png 1014w, http://100.96.1.66:3001/app/uploads/2020/05/report-results-trader-cross-polination-percent-300x249.png 300w, http://100.96.1.66:3001/app/uploads/2020/05/report-results-trader-cross-polination-percent-768x636.png 768w" sizes="(max-width: 1014px) 100vw, 1014px" /></figure></div>



<h2>Conclusion</h2>



<p>Here are our main 7 conclusions following this analysis</p>



<ol><li>NFT / Crypto-gaming communities remain extremely separated. Apart from CryptoKitties, almost all projects have less than 10% of common users with other projects.</li><li>We deduce that the players of these projects are invested because they appreciate the experience and the in-game universe, not because it is a &#8220;blockchain game”.</li><li>CryptoKitties remains one of the pillars of the crypto-gaming ecosystem even almost 2 years after its launch (More than a third of Neon District players are also trading CryptoKitties, while the traders of 0xUniverse do not seem like big fans of kittens)</li><li>Unsurprisingly, 1 out of 4 <a href="https://nonfungible.com/market-tracker/chainbreakers" target="_blank" rel="noreferrer noopener">Chainbreakers</a> players have bought or sold a LAND on <a href="https://nonfungible.com/market-tracker/decentraland" target="_blank" rel="noreferrer noopener">Decentraland </a>in the last 6 months</li><li>Paradoxically, the CryptoKitties players are hardly interested in Chainbreakers, only 0.35% of CryptoKitties players traded Chainbreakers items.</li><li>The largest (reciprocal) adherence areas between projects were identified between CryptoKitties and <a href="https://nonfungible.com/market-tracker/axieinfinity" target="_blank" rel="noreferrer noopener">Axie Infinity</a> <ul><li>26% of Axie Infinity traders also bought or sold <a href="https://nonfungible.com/market-tracker/cryptokitties" target="_blank" rel="noreferrer noopener">CryptoKitties</a></li><li>Almost 3% of CryptoKitties users also bought or sold Axies</li></ul></li><li>The community of <a href="https://nonfungible.com/market-tracker/0xuniverse" target="_blank" rel="noreferrer noopener">0xUniverse </a>is obviously the most isolated community of the NFT ecosystem, with very weak areas of adherence with other projects (maximum 8% of its traders are involved in another project &#8211; <a href="https://nonfungible.com/market-tracker/cryptokitties" target="_blank" rel="noreferrer noopener">CryptoKitties</a>)</li></ol>



<h2>Which part of the whole community trades several game assets?</h2>



<p>The following table details the number and percentage of players according to the number of blockchain games with which they interacted:</p>



<ul><li>Only 3.43% of the entire community interacted with more than 2 projects over the period</li><li>Only 1.34% of players traded more than 3 blockchain games’ assets.</li></ul>



<p>Thus, almost all NFT traders are active on 1, maximum 2 games in parallel, rarely more.</p>



<figure class="wp-block-table aligncenter"><table><tbody><tr><td><strong>Number of projects with which the player interacted</strong></td><td><strong>Number of players</strong></td><td><strong>Percentage of the overall community</strong></td></tr><tr><td>1</td><td>11852</td><td>90,13%</td></tr><tr><td>2</td><td>847</td><td>6,44%</td></tr><tr><td>3</td><td>275</td><td>2,09%</td></tr><tr><td>4</td><td>76</td><td>0,58%</td></tr><tr><td>5</td><td>43</td><td>0,33%</td></tr><tr><td>6</td><td>29</td><td>0,22%</td></tr><tr><td>7</td><td>18</td><td>0,14%</td></tr><tr><td>8</td><td>8</td><td>0,06%</td></tr><tr><td>9</td><td>0</td><td>0,00%</td></tr><tr><td>10</td><td>2</td><td>0,02%</td></tr></tbody></table></figure>



<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" width="530" height="430" src="http://100.96.1.66:3001/app/uploads/2020/05/report-wallet-distribution.png" alt="" class="wp-image-1486" srcset="http://100.96.1.66:3001/app/uploads/2020/05/report-wallet-distribution.png 530w, http://100.96.1.66:3001/app/uploads/2020/05/report-wallet-distribution-300x243.png 300w" sizes="(max-width: 530px) 100vw, 530px" /></figure></div>



<p><strong>Chart highlighting the distribution of players according to the number of blockchain games they traded within the period.</strong></p>


Is the blockchain gaming ecosystem a large family or a multitude of small tribes side by side? How many users are trading NFT in several games?

One global or several tiny NFT communities? Traders version


<p>This past year has been an incredible ride on the non-fungible wave, from our startup in March 2018, to partnerships and conference attendance, every event has been one to learn from. With 2018 soon behind us, we realize that we have not communicated many of the milestones and achievements we’ve accomplished while bootstrapping <a href="https://nonfungible.com" target="_blank" rel="noreferrer noopener">NonFungible.com</a>.</p>



<h2>Partnerships &amp; Collaborations</h2>



<p>We’ve made a few partnerships in 2018 that allows us to gain valuable feedback, be part of amazing teams, and best of all, improve the experience for users across several projects.</p>



<h3>NFT.NYC</h3>



<p>NFT.NYC is hosting a non-fungible focused conference, “Exploring the Non-Fungible Blockchain Ecosystem” on Wednesday, February 20, 2019 at the PlayStation Theater in Times Square, NYC. Hosted by Coin.Kred and<a href="https://opensea.io/" target="_blank" rel="noreferrer noopener"> OpenSea</a>, this is sure to be an informative and fun event! We are proud to use our resources to provide statistical data and assist with marketing of the conference.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="400" height="400" src="http://100.96.1.66:3001/app/uploads/2020/05/zoup-at-nft-nyc-2019.jpeg" alt="" class="wp-image-1372" srcset="http://100.96.1.66:3001/app/uploads/2020/05/zoup-at-nft-nyc-2019.jpeg 400w, http://100.96.1.66:3001/app/uploads/2020/05/zoup-at-nft-nyc-2019-300x300.jpeg 300w, http://100.96.1.66:3001/app/uploads/2020/05/zoup-at-nft-nyc-2019-150x150.jpeg 150w" sizes="(max-width: 400px) 100vw, 400px" /></figure></div>



<p class="has-text-align-center"><em>Please come check us out at</em><a href="https://www.nft.nyc/" target="_blank" rel="noreferrer noopener"><em> NFT.NYC</em></a><em> in February! We would love to meet you!</em></p>



<h3>CoinGecko</h3>



<p>CoinGecko provides a 360-degree view of cryptocurrency and ERC20 token trading metrics. They are quickly giving competitors a run for their money and, they are part of the NonFungible Alliance!<a href="https://nonfungible.com" target="_blank" rel="noreferrer noopener"> NonFungible.com</a> and CoinGecko have established a collaborative partnership to provide NFT statistics for their quarterly cryptocurrency reports. Check out the <a href="https://blog.coingecko.com/2018-q3-cryptocurrency-report/" target="_blank" rel="noreferrer noopener">Coingecko Q3 Crypto quarterly report</a> on their website .</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="710" height="402" src="http://100.96.1.66:3001/app/uploads/2020/05/nonfungible-and-coingecko-2018-q3.png" alt="" class="wp-image-1373" srcset="http://100.96.1.66:3001/app/uploads/2020/05/nonfungible-and-coingecko-2018-q3.png 710w, http://100.96.1.66:3001/app/uploads/2020/05/nonfungible-and-coingecko-2018-q3-300x170.png 300w" sizes="(max-width: 710px) 100vw, 710px" /><figcaption>Coingecko &#8211; Q3 2018 Cryptocurrency report</figcaption></figure></div>



<h3><a href="https://blog.coingecko.com/2018-q3-cryptocurrency-report/"></a>Ember Sword</h3>



<p><a href="https://embersword.com/" target="_blank" rel="noreferrer noopener">Ember Sword</a> is building an MMORPG game using blockchain technology. Their focus on user experience and eliminating pay-to-win gaming are a winning combination. <a href="https://nonfungible.com" target="_blank" rel="noreferrer noopener">NonFungible.com</a> and Ember Sword have established a marketing and strategic partnership. We hope to deploy an alpha version of a new product with Ember Sword integration in 2019 / 2020. Visit their website to learn more — </p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="800" height="431" src="http://100.96.1.66:3001/app/uploads/2020/05/embersword.jpg" alt="" class="wp-image-1374" srcset="http://100.96.1.66:3001/app/uploads/2020/05/embersword.jpg 800w, http://100.96.1.66:3001/app/uploads/2020/05/embersword-300x162.jpg 300w, http://100.96.1.66:3001/app/uploads/2020/05/embersword-768x414.jpg 768w" sizes="(max-width: 800px) 100vw, 800px" /><figcaption><a href="https://embersword.com/" target="_blank" rel="noreferrer noopener">Ember Sword</a></figcaption></figure></div>



<h3><a href="https://embersword.com"></a>NonFungible Alliance</h3>



<p>NonFungible.com was among some of the first members to the alliance, now boasting over 75 members! Ran by <a href="https://0xcert.org/" target="_blank" rel="noreferrer noopener">0xcert</a>, the NonFungible Alliance is a place for non-fungible thinkers, enthusiasts, and creators to get early product access, gain exposure, add access to a large network for questions or advice. We are happy to be in a position to help token publishers and creators alike.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="800" height="386" src="http://100.96.1.66:3001/app/uploads/2020/05/nft-alliance.png" alt="" class="wp-image-1375" srcset="http://100.96.1.66:3001/app/uploads/2020/05/nft-alliance.png 800w, http://100.96.1.66:3001/app/uploads/2020/05/nft-alliance-300x145.png 300w, http://100.96.1.66:3001/app/uploads/2020/05/nft-alliance-768x371.png 768w" sizes="(max-width: 800px) 100vw, 800px" /><figcaption><a href="https://nonfungiblealliance.org" target="_blank" rel="noreferrer noopener">The Non-Fungible Alliance</a></figcaption></figure></div>



<h2><a href="https://nonfungiblealliance.org"></a>Conferences / Events</h2>



<p>This was an exciting year for non-fungible tokens, and the events and conferences were no exception. We attended the World Blockchain Forum in NYC, the Blockchain Futurists Conference in Toronto, Canada, the Non-Fungible Summit in San Francisco, and the Malta Delta Summit in Malta.</p>



<p>We also had the opportunity to speak at 2 small events and look forward to presenting at the<a href="https://www.nft.nyc/" target="_blank" rel="noreferrer noopener"> NFT.NYC event in February 2019</a>. Check out the Cryptogoods Club: Taking Cryptogoods to the Mainstream by Gauthier </p>



<figure class="wp-block-embed aligncenter is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="Taking Cryptogoods to the Mainstream, with CryptoKitties Founding Member" width="500" height="281" src="https://www.youtube.com/embed/hJjn_N1WuAU?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>
</div></figure>



<p>And to go even further, the event by StartupToken: What are NFTs?</p>



<figure class="wp-block-embed aligncenter is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="Non Fungible Tokens, Blockchain Thursday : Gauthier Zuppinger" width="500" height="281" src="https://www.youtube.com/embed/Jfylj73m_I8?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>
</div></figure>



<h2>Looking forward into 2019</h2>



<h3>Website</h3>



<p>With 2018 behind us and our core development completed, we look forward to launching the new version of <a href="https://nonfungible.com" target="_blank" rel="noreferrer noopener">NonFungible.com</a>! The new frontend is polished and provides us with the space to expand and help serve the non-fungible token industry more effectively. Our new and improved backend makes it very easy for us to add new project market history and we look forward to getting back to adding projects on a regular basis. We’ve also provisioned and prepared much of the backed for a few new features like an NFT wallet and premium market analysis tools.</p>



<h3>Upsizing NonFungible.com</h3>



<p>Along with several new features on our roadmap, we plan on taking on an active role in several events, as speakers, partners, and maybe even as organizers! We are working with key partners to grow and eventually switching gears to work on NonFungible.com full-time. We will release more details about new collaboration projects to build tools and interactive experiences supporting NFT publishers.</p>



<p>Once again, thank you for your continued support! We look forward to a productive year of #buidl!</p>


This past year has been an incredible ride on the non-fungible wave, from our startup in March 2018, to partnerships and conference…

2018: A year in review and looking forward


<p>We had already proposed a short <a href="https://nonfungible.com/news/analysis/short-analysis-of-decentraland-s-uprising-economy" target="_blank" rel="noreferrer noopener">analysis of Decentraland’s economy</a> some time ago, about 1 month after the official marketplace launched.</p>



<p>The Marketplace has just celebrated its 4 months of operation on July 19th. The opportunity has come again to provide an overview of the project, and the evolution of its market.</p>



<h2>The context of Decentraland</h2>



<p>Let’s start with a little reminder. The evolution of the LAND market on <a href="https://nonfungible.com/market-tracker/decentraland" target="_blank" rel="noreferrer noopener">Decentraland </a>can’t be understood or analyzed without taking into account the global context of cryptocurrencies.</p>



<p>MANA (Decentraland’s ERC20 token), is in the Top 100 of Cryptocurrencies in terms of capitalization (<a href="https://coinmarketcap.com/currencies/decentraland/" target="_blank" rel="noreferrer noopener">CoinMarketCap – Decentraland</a>). Despite this market capitalization, MANA follows the Bitcoin fluctuations like any other Cryptocurrency. Thus, the MANA course evolution has to be analyzed while taking into account the Decentraland project’s actuality and the global cryptocurrency market.</p>



<p>It’s quite different for LAND. LAND tokens are NFTs (Non-Fungible Tokens): more simply, it is a single item, whose characteristics are unique and cannot simply be replaced by any other LAND token. You can read this excellent article written by Decentraland team explaining what a NFT is.</p>



<p>Here, the unique and non-Fungible features of the token are geographical xy coordinates on a map. LAND parcels may be close to a high traffic area, a road, or a District., all of which can impact the perceived value of that parcel.</p>



<p>NFTs have this very particular characteristic in the cryptosphere: the evolution of their value is relatively independent from the price of crypto-currencies.</p>



<p>We can consider LAND as an unusual NFT: it is far more than a cryptocurrency or cryptocollectible to speculate on. LAND is what makes up the virtual world of Decentraland it embodies the possibility for anyone to build their own business, application, game, or structure in this future ecosystem.</p>



<h2>Market evolution over 4 last months</h2>



<p>All data presented in this article as well as in the infographics are provided by <a href="https://nonfungible.com" target="_blank" rel="noreferrer noopener">NonFungible.com</a>: the reference about NFT Markets evolution.</p>



<h3>March: An incredible start!</h3>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1280" height="720" src="http://100.96.1.66:3001/app/uploads/2020/05/decentraland-march-statistics.jpeg" alt="" class="wp-image-1344" srcset="http://100.96.1.66:3001/app/uploads/2020/05/decentraland-march-statistics.jpeg 1280w, http://100.96.1.66:3001/app/uploads/2020/05/decentraland-march-statistics-300x169.jpeg 300w, http://100.96.1.66:3001/app/uploads/2020/05/decentraland-march-statistics-1024x576.jpeg 1024w, http://100.96.1.66:3001/app/uploads/2020/05/decentraland-march-statistics-768x432.jpeg 768w" sizes="(max-width: 1280px) 100vw, 1280px" /></figure></div>



<p>If we have a look at the <a href="https://nonfungible.com/market-tracker/decentraland" target="_blank" rel="noreferrer noopener">Decentraland Marketplace’s overall statistics</a>, we can see that the equivalent of $3.5 million USD has been exchanged in less than 4 months, and $1.3 million USD during the period from March 19 to 31.</p>



<p>This launch period is obviously the most impressive one: we observed the most expensive sale in the metaverse history: 2,000,000 MANA for a single LAND. We also saw an average of 62 LAND sold per day and an average sale price of 20,324 MANA (approximately $1,714 USD).</p>



<p>We need to put this launch in context to understand what happened. Before the launch of the<a href="https://market.decentraland.org/" target="_blank" rel="noreferrer noopener"> official Decentraland marketplace</a>, LAND was sold in a parallel market based on the trust and reputation of the various stakeholders. A member of the community announced on the Decentraland chat the information about the LAND parcel he or she wanted to sell, and the most interesting offer won the sale.</p>



<p>The buyer had to transfer the sum in MANA to the seller’s account, and … cross their fingers hoping that the seller is honest. The arrival of the marketplace represented a considerable evolution in this market with the intervention of a trusted third party that was free, reliable, decentralized.</p>



<p>Parallel market transactions stopped a few days before the Marketplace was released.</p>



<p>Obviously this launch has crystallized a lot of expectations for both. buyers and sellers.</p>



<p>This context, and those expectations, can explain the extremely large number of transactions and the prices we’ve seen.</p>



<h3>April / May slowdown</h3>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1280" height="720" src="http://100.96.1.66:3001/app/uploads/2020/05/decentraland-april-statistics.jpeg" alt="" class="wp-image-1345" srcset="http://100.96.1.66:3001/app/uploads/2020/05/decentraland-april-statistics.jpeg 1280w, http://100.96.1.66:3001/app/uploads/2020/05/decentraland-april-statistics-300x169.jpeg 300w, http://100.96.1.66:3001/app/uploads/2020/05/decentraland-april-statistics-1024x576.jpeg 1024w, http://100.96.1.66:3001/app/uploads/2020/05/decentraland-april-statistics-768x432.jpeg 768w" sizes="(max-width: 1280px) 100vw, 1280px" /></figure></div>



<p>We then saw a progressive slowdown in the market in April, with a successive decline of 18% then 45% of the sales volume per month.</p>



<p>More interestingly, we noticed that the total amount of MANA exchanged lowered further : -46% on April then -56% in May. This implies that beyond the number of transactions, the overall assets had been devalued.</p>



<p>Indeed, between March and May, we saw the average value of LAND lowered from 20,324 to 10,615 MANA, a drop of nearly 50% of the NFT value.</p>



<p>It is very difficult to precisely identify the reasons for this devaluation, but here are some hints that seem relevant to us:</p>



<ul><li>The global fall in the prices of cryptocurrencies and the general concern about long-term impact of digital assets (relayed by the media)</li><li>The Decentraland project went through a backend work period, without any important announcement to the community.</li><li>The lack of stakeholders renewal in the flipping LAND eco-system: the number of LAND owners remained practically the same through those months. Cf. etherscan.io</li></ul>



<p>Note, however, that the average price of LAND in dollars is the only key performance indicator (KPI) to have increased over May, mainly because of the positive evolution of MANA price.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1280" height="720" src="http://100.96.1.66:3001/app/uploads/2020/05/decentraland-may-statistics.jpeg" alt="" class="wp-image-1346" srcset="http://100.96.1.66:3001/app/uploads/2020/05/decentraland-may-statistics.jpeg 1280w, http://100.96.1.66:3001/app/uploads/2020/05/decentraland-may-statistics-300x169.jpeg 300w, http://100.96.1.66:3001/app/uploads/2020/05/decentraland-may-statistics-1024x576.jpeg 1024w, http://100.96.1.66:3001/app/uploads/2020/05/decentraland-may-statistics-768x432.jpeg 768w" sizes="(max-width: 1280px) 100vw, 1280px" /></figure></div>



<p>After analysis, it appears that the evolution of the lowest and the highest prices during the different months does not represent any relevant pattern, since the lowest prices are often determined by mistakes (9.9 MANA, 950 MANA, …), and the highest prices raised some suspicions about the legitimacy of the transaction.</p>



<h3>June: Market wakes up!</h3>



<p>We saw an important change in June: the sales volume, average selling price, and overall transaction volume all went up, despite an unfavorable climate in the crypto-sphere.</p>



<p>There is a rebound of almost 43% in sales volume, increasing the number of sales per day from 11 to 17.</p>



<p>The average price of LAND in MANA also increased by 21% during the month of June, without any “spectacular” sales exceeding one million MANA.</p>



<p>It is extremely interesting to note that despite an overall fall in cryptocurrency prices for several months, the LAND market picked up momentum in both sales volume and asset prices.</p>



<p>Regarding the overall volume traded in MANA, we observed a real boom with an increase of 73% in comparison with the month of May. This increase has to be compared with an increase of only 22% of the volume exchanged in dollars. This is explained by the gradual decline in the price of MANA over the period.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1280" height="720" src="http://100.96.1.66:3001/app/uploads/2020/05/decentraland-june-statistics.jpeg" alt="" class="wp-image-1347" srcset="http://100.96.1.66:3001/app/uploads/2020/05/decentraland-june-statistics.jpeg 1280w, http://100.96.1.66:3001/app/uploads/2020/05/decentraland-june-statistics-300x169.jpeg 300w, http://100.96.1.66:3001/app/uploads/2020/05/decentraland-june-statistics-1024x576.jpeg 1024w, http://100.96.1.66:3001/app/uploads/2020/05/decentraland-june-statistics-768x432.jpeg 768w" sizes="(max-width: 1280px) 100vw, 1280px" /></figure></div>



<h3>July: value before volume.</h3>



<p>Contrary to our expectations, the LAND market experienced another major decline in July, despite the rebound in June.</p>



<p>In July, we saw the lowest number of sales since the opening of the marketplace, with an average sales / day of less than 10, for the first time since March.</p>



<p>The volumes traded on the market were impacted accordingly- down 38% compared to the previous month (in MANA).</p>



<p>It should be noted, however, that average transaction prices increased, while volume was decreasing. We can conclude that there was a lower volatility of the LANDs but a higher valuation of these assets.</p>



<p>We analyze two points in this phenomenon:</p>



<p>The purchase value of LAND continues to increase steadily, despite fluctuations in the cryptocurrency markets</p>



<p>Volatility is still declining, suggesting that speculative logic is slowly fading away.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1280" height="720" src="http://100.96.1.66:3001/app/uploads/2020/05/decentraland-july-statistics.jpeg" alt="" class="wp-image-1351" srcset="http://100.96.1.66:3001/app/uploads/2020/05/decentraland-july-statistics.jpeg 1280w, http://100.96.1.66:3001/app/uploads/2020/05/decentraland-july-statistics-300x169.jpeg 300w, http://100.96.1.66:3001/app/uploads/2020/05/decentraland-july-statistics-1024x576.jpeg 1024w, http://100.96.1.66:3001/app/uploads/2020/05/decentraland-july-statistics-768x432.jpeg 768w" sizes="(max-width: 1280px) 100vw, 1280px" /></figure></div>



<h2>Global Market Trends</h2>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1200" height="675" src="http://100.96.1.66:3001/app/uploads/2020/05/decentraland-global-trends-1.jpeg" alt="" class="wp-image-1349" srcset="http://100.96.1.66:3001/app/uploads/2020/05/decentraland-global-trends-1.jpeg 1200w, http://100.96.1.66:3001/app/uploads/2020/05/decentraland-global-trends-1-300x169.jpeg 300w, http://100.96.1.66:3001/app/uploads/2020/05/decentraland-global-trends-1-1024x576.jpeg 1024w, http://100.96.1.66:3001/app/uploads/2020/05/decentraland-global-trends-1-768x432.jpeg 768w" sizes="(max-width: 1200px) 100vw, 1200px" /></figure></div>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1200" height="675" src="http://100.96.1.66:3001/app/uploads/2020/05/decentraland-global-trends-2.jpeg" alt="" class="wp-image-1350" srcset="http://100.96.1.66:3001/app/uploads/2020/05/decentraland-global-trends-2.jpeg 1200w, http://100.96.1.66:3001/app/uploads/2020/05/decentraland-global-trends-2-300x169.jpeg 300w, http://100.96.1.66:3001/app/uploads/2020/05/decentraland-global-trends-2-1024x576.jpeg 1024w, http://100.96.1.66:3001/app/uploads/2020/05/decentraland-global-trends-2-768x432.jpeg 768w" sizes="(max-width: 1200px) 100vw, 1200px" /></figure></div>



<p>The trends of overall sales and transaction volume are perfectly consistent, and follow the trend of declining then stabilizing between March and May, before gradually increasing through June.</p>



<p>The average price of LAND in MANA also follows this trend, however it is interesting to note that the price in USD does not experience the same fluctuations as it also depends on the evolution of the price of the MANA, which experienced a significant rise in May.</p>



<p>In comparison with the global environment of NFTs, Decentraland is the first platform to propose NFTs with an average value greater than $1,000 USD. It represents an incredible challenge to launch a market and an economy based on items of this price, in a tense economic context for cryptocurrencies.</p>



<h2>What defines LAND value?</h2>



<p>Defining the value of a LAND is a complex exercise. We can consider that value of LAND is defined in two stages: the speculative dimension of the asset, and the promise of experience it contains.</p>



<p>To take a concrete example, a parcel of 1km2 on Manhattan in the 16th century was cheaper than today. What has changed is not the parcel in itself, it is what we built there. What we made of the parcel defines its actual value.</p>



<p>Unlike many NFTs today, LAND token offers a second level of value perfectly comparable to these lands on Manhattan.</p>



<p>What defines the value of LAND today (<strong><em>speculation about the hypothetical potential of the land AND the project</em></strong>) is not what will define its value tomorrow (<strong><em>the actual use and the service offered on the parcel and in its direct proximity</em></strong>).</p>



<p>The LAND valuation model we have described here will most likely be extremely different in the coming years, depending on the projects launched on the platform and the emerging business models.</p>


We had already proposed a short analysis of Decentraland's economy some time ago, about 1 month after the official marketplace launched.

Decentraland: Market Evolution


<p>In 2018, I learned about the <a href="https://nonfungible.com/market-tracker/decentraland" target="_blank" rel="noreferrer noopener">Decentraland</a> project and the notion of creating a virtual reality Metaverse on the Ethereum blockchain. If you are unaware of what Decentraland is, check out their<a href="https://decentraland.org/whitepaper.pdf" target="_blank" rel="noreferrer noopener"> whitepaper</a> and <a href="https://medium.com/@carlfravel/why-im-glad-i-own-property-in-decentraland-8eb59376de41" target="_blank" rel="noreferrer noopener">this article</a>.</p>



<p>Safe to say, I am amazed by Decentraland and, in particular, the LAND market. Decentraland LANDs are non-fungible, ERC-721 tokens that can be purchased, sold and traded on the <a href="https://market.decentraland.org/" target="_blank" rel="noreferrer noopener">Decentraland Marketplace.</a> As a ‘numbers guy’, I am fascinated by the Marketplace that the Decentraland team has created.</p>



<h2>How to Value LANDs</h2>



<p>Just like real estate, the <strong>key to valuing Decentraland LAND</strong> is based on <strong>3 words</strong> you’ve probably heard before: <strong>location, location, location!</strong> People are scrambling to figure out how to place a price on their land. Here are the trends I am noticing:</p>



<p><strong><em>1. Proximity to road</em></strong></p>



<p>Is the LAND connected to a road or not? There are tons of questions that need to be answered here. Will there be access to parcels that are not attached to roads? Realistically, 90% of parcels would be inaccessible if you could only access roadside parcels.</p>



<p><strong><em>2. Distance from the center</em></strong></p>



<p>The closer you are to parcel coordinates 0,0 the more valuable your land is! As of now, the Central Plaza will be the only spawning location.</p>



<p><strong><em>3. Proximity to districts</em></strong></p>



<p>People are banking on districts generating foot traffic. The more popular the district is, the more people will go to your land!</p>



<p><strong><em>4. Detached LANDs</em></strong></p>



<p>If your land is not attached to a road, it probably isn’t valued as much as the roadside!</p>



<p>This list is not exhaustive. As the platform continues to grow, we will see new value indicators emerge and will add them to this list.</p>



<h2>Introduction of Marketplace &amp; Variable Prices</h2>



<p>What is Value? How does a person value a parcel of land that you cannot build on yet? These are questions that the <a href="https://nonfungible.com/market-tracker/decentraland" target="_blank" rel="noreferrer noopener">Decentraland </a>community members are asking themselves since the introduction of the<a href="https://market.decentraland.org/" target="_blank" rel="noreferrer noopener"> Land Marketplace</a> on March 23rd, 2018. The Land Marketplace has given the community the first chance for people to offer their parcels of land that they “won” in the Terraform Auction which started on December 15th.</p>



<p>Since the Land Marketplace was introduced to the community, there has been a wide variety of asking prices that people are demanding. The asking prices have ranged from 950 MANA to 10+ million MANA (<a href="https://currencio.co/mana/usd/" target="_blank" rel="noreferrer noopener">convert MANA to any currency here</a>). There is no rhyme or reason why people are valuing parcels at the prices that they’re going for. The only possible economic answer as to why prices are what they are is one that people who invest in cryptocurrencies understand very well:</p>



<p>“The value of any asset is only defined by the value buyers are willing to give to it.”</p>



<p>As long as people continue to buy Decentraland LANDs, we will start to gauge what the true value is of the land. At the end of the day, the value of LAND will be determined by the buyers. As long as people continue to purchase LANDs, the community will get more data on what the value is of Decentraland LANDs.</p>



<h2>Let’s Talk Numbers</h2>



<p>Using data from <a href="http://nonfungible.com" target="_blank" rel="noreferrer noopener">NonFungible.com</a>, we calculated the actual LAND value of different areas of Decentraland’s Genesis City map. <strong>NonFungible.com has the entire history of the 35,000+ LAND transactions</strong> that have occurred since Decentraland’s inception.</p>



<p>In order to make a practical and usable map that makes sense from a macro value perspective, we<strong> subdivided the Genesis City map into 18 “value zones.” </strong>For our map, we focused on the following value indicators.</p>



<ol><li>Average purchase price</li><li>Maximum purchase price</li><li>Minimum purchase price</li><li>Number of sales in the area</li></ol>



<h3><strong>The following map contains our findings:</strong></h3>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="1600" height="906" src="http://100.96.1.66:3001/app/uploads/2020/05/decentraland_global_statistics.png" alt="" class="wp-image-1340" srcset="http://100.96.1.66:3001/app/uploads/2020/05/decentraland_global_statistics.png 1600w, http://100.96.1.66:3001/app/uploads/2020/05/decentraland_global_statistics-300x170.png 300w, http://100.96.1.66:3001/app/uploads/2020/05/decentraland_global_statistics-1024x580.png 1024w, http://100.96.1.66:3001/app/uploads/2020/05/decentraland_global_statistics-768x435.png 768w, http://100.96.1.66:3001/app/uploads/2020/05/decentraland_global_statistics-1536x870.png 1536w" sizes="(max-width: 1600px) 100vw, 1600px" /></figure></div>



<h2>Our Findings</h2>



<ul><li>Our 18 zone map allows the community to see the connection between proposed prices and the value determined by the buyers.</li><li>Within the four central zones, there are massive disparities in the average price for parcels (<strong>27,000 MANA </strong>to <strong>136,000 MANA</strong>).</li><li>Surprisingly, the southern zone which has a ton of roads has the lowest average purchase value (<strong>9,724 MANA</strong>). Some community members think that this is because there is no district in the south.</li><li>Mysteriously, the lower-right-corner of the map has a higher than average price even though there are no roads and no districts in this region of the map (<strong>12,683 MANA</strong>). Some guess that this value has been driven up by important projects carried out by third parties around the perimeter of the Districts.</li><li>Since there were three outlier transactions exceeding one million MANA, we decided it was necessary to do two global average prices. <strong>Our goal</strong> is to <strong>help buyers and sellers properly value their land</strong> so <strong>we can help build a healthy economy</strong> driven by the Decentraland project.</li></ul>



<p>Finally, I want to thank @dafky2000 (<a href="https://nonfungible.com/pages/index.html" target="_blank" rel="noreferrer noopener">NonFungible.com</a> CEO). His hard work and dedication to the non-fungible space have made all of this possible.</p>



<p>Special thanks also go to Ethen Ostroff (@Ethen.O) for his great review and help with this article.</p>



<p class="has-text-align-center has-medium-font-size"><strong>More articles to come on other Crypto Collectibles! Stay tuned!</strong></p>


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